PayPal and MasterCard end fight with agreement on fees and data

Seattle

PAYPAL Holdings Inc and MasterCard Inc will end years of squabbling between the companies with an agreement to give PayPal lower fees and more reach in stores, while increasing MasterCard's online payments volume and helping its mobile-payments initiative.

The deal, announced on Tuesday, is another step towards resolving PayPal's sometimes-strained relationship with credit card giants, as the two sides have fought for control over online and in-store transactions. It's similar to an agreement PayPal inked with Visa Inc in July that sent PayPal shares tumbling nearly 10 per cent as investors worried about a lack of clarity regarding higher transaction costs.