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PayPal and MasterCard announced today that they are introducing a new service that will allow PayPal users to use their PayPal balance to pay on e-commerce sites that accept MasterCard.  PayPal’s new service, called “Secure Card,” will be available through a software application that will automatically generate single-use MasterCard numbers that customers can use when they want to make payments to internet retailers that do not accept PayPal.

Interesting.  Can’t I already use my PayPal funds where MasterCard is accepted by using my PayPal debit card?  I get 1.5% back using my debit card as well.  Besides the security of having a single use MasterCard number (which would have been useful during my recent fraud experience), I wonder if there will be incentive to use the new service such as the debit card rebate?

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