NEW YORK (TheStreet) -- Shares of PayPal (PYPL - Get Report) were advancing in pre-market trading on Tuesday after the San Jose, CA-based payment platform company announced it was expanding its partnership with Mastercard (MA) to allow customers to use PayPal's payment services in stores.

PayPal will allow customers to make Mastercard their automatic payment option, and consumers and small businesses will now be able to cash out funds from PayPal accounts immediately onto a Mastercard debit card, according to a statement.

The company is also offering Mastercard as a payment choice for Braintree payment company's merchants.

Additionally, PayPal will be provided certain financial volume incentives in the deal and will no longer pay a digital wallet operator fee.

PayPal will be using Purchase, NY-based Mastercard's "tokenization" services to allow customers to feature Mastercard in their PayPal wallets to make purchases at contactless-enabled businesses.

PayPal recently struck a similar deal with Visa (V) in which the credit card company would be offered as an automatic choice to users in the PayPal wallet, allowing customers to move money from Visa accounts directly onto PayPal.

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Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

TheStreet Ratings rated this stock as a "hold" with a ratings score of C-.

The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year, robust revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we find that the company's profit margins have been poor overall.

You can view the full analysis from the report here: PYPL