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The partnership allows Visa debit customers to move money instantly on Paypal and Venmo accounts.
The agreement gives PayPal incentives for increased Visa card spending volumes from merchants and consumers.
PayPal will join the Visa Digital Enablement Program (VDEP) to expand point-of-sale acceptance. The companies aim to use their partnership will improve customer experience, efficiency, and security.
"This agreement opens new avenues for PayPal to collaborate with Visa, financial institutions, and others in the payments ecosystem to deliver greater value, more choice, and new experiences for our joint customers wherever they transact — online, in-app or in-store," PayPal CEO Dan Schulman said in a statement.