PayPal Holdings Inc has entered into a deal with MasterCard Inc that will allow payments in stores, the Wall Street Journal reported.

PayPal will allow users to select a credit or debit card as the default payment method and share data on transactions made through MasterCard's tap-and-pay feature.

PayPal reached a similar deal with Visa Inc in July to make it easier for its customers to use Visa credit and debit cards in stores.

PayPal and MasterCard were not immediately available for comment, Reuters reports.