PayPal (PYPL) - Get Report and JPMorgan Chase & Co (JPM) - Get Report announced a partnership Thursday that will allow Chase cardholders to link their Chase Pay accounts to PayPal accounts.

The deal also allows customers the option of paying with Chase Ultimate Rewards points at any of PayPal's millions of online merchants when their Chase Pay accounts are linked through PayPal. JPMorgan will now process PayPal payments on ChaseNet, Chase's closed-loop payment network.

PayPal stock was up over 1% in late morning trading. JPMorgan stock traded slightly down.

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