Chase Partners with Paypal for UR Points Redemption and Chase-Pay/Paypal Integration

Chase and Paypal have announced a partnership that will make it easy to add Chase cards via Chase Pay to PayPal accounts, and will soon offer customers the option of paying with Ultimate Rewards points when linked through Chase Pay at PayPal’s millions of online merchants.

Chase told Doctorofcredit that the implementation of the partnership will come in 2018.

Press Release

There are a number of collaborations here between Chase and Paypal as part of this agreement:

1. It will become possible to add a Chase card to Paypal from within Chase Pay.
2. Cards linked to Paypal through Chase Pay will then be able to redeem their Ultimate Rewards points for purchases when paying with Paypal at millions of merchants who accept Paypal.
   • Chase tells us that they aren’t focusing right now on announcing exact details of how it will be implemented, but they did make it sound like the value will likely be .8 cents per point, as is the value when redeeming Ultimate Rewards points on Amazon.  (It never makes sense to use these options since you can redeem the points straight-up for cash at 1 cent per point.)
3. Chase will process Chase card payments from PayPal via ChaseNet.
   • I’d guess that’s something which will save Paypal some processing fees.
4. Chase cardholders will be able to use their PayPal account in-store through the PayPal mobile wallet.
   • I’m not sure if this partnership is really necessary for that; Chase cards can always be added to your Paypal account and then used in-store (I think?).
5. Braintree will make Chase Pay available as a payment method for its merchants to integrate into their checkout experiences.
   • Sounds like Paypal will essentially be promoting the use of Chase Pay instead of Paypal itself.

Citi also just announced a partnership with Paypal to enable redeeming ThankYou points at .8 cents per points at Paypal checkout. I wonder if Amex will do the same for their Membership Rewards points.