The move will allow Samsung's mobile payment platform Samsung Pay to be linked to PayPal accounts, which paves the way for Samsung to expand its consumer base, according to Samsung.
Samsung said it would begin the Samsung Pay service using PayPal first in the U.S. before gradually expanding it to other global markets.
Unfortunately, as is usually the case with new features, access to PayPal is only available in the USA for now although the company says other countries will follow suit in the future.
So far this year, it launched its Samsung Pay service in nine countries including Thailand and India. The following year, PayPal was added as a payment method within Samsung Smart TVs. Users will also receive Samsung Pay benefits such as rewards points and gift cards when using PayPal on it.
Samsung also announced a new partnership with Braintree, a PayPal service, that will allow more merchants to accept Samsung Pay.
This is not the first time PayPal and Samsung partnered with each other.
With millions of PayPal users out there with limited ways of using their funds in stores, this collaboration is hugely beneficial. Samsung phones have MST (Magnetic Secure Transmission) hardware under the hood, which makes Samsung Pay usable at outlets where debit or credit cards are accepted. "We are excited to be partnering with PayPal, one of the largest payment platforms in the world, to offer our global consumers a richer mobile wallet experience". In other words, users can access their PayPal wallet right inside Samsung's app and spend the balance in places where they couldn't before.