San Francisco-based Providian Financial has taken an equity stake in P2P payments outfit PayPal and will offer a co-branded credit card to PayPal's six million members in the spring.
Under the terms of the agreement Providian also has the opportunity to license PayPal's technology for private label person-to-person payments for its 16 million customers.
The planned co-branded credit card will grant users a range of benefits and privileges when used with the PayPal service, says the company. Cardholders will be able to use the card in all merchant locations that accept credit cards, both on the Internet and in traditional merchant locations.