07 February 2016

PayPal taps Discover network to reach millions of US stores

22 August 2012  |  7089 views  |  1 PayPal logo

PayPal has struck a deal with Discover that will see it tap into the card firm's network to bring acceptance of its mobile wallet to millions of US stores.

PayPal has made an aggressive push into the bricks and mortar world over the last year, signing up more than 15 major retailers, including Home Depot and Toys "R" Us, to its in-store system which lets customers pay by using PayPal Access cards or entering a mobile phone number and PIN into the terminal.

The Discover deal means that PayPal no longer needs to strike deals with individual firms. Instead, from next year, participating retailers will be able to accept PayPal through their existing relationship with Discover - opening up a potential seven million merchant locations to the eBay unit.

The old strategy also involved getting terminal manufacturers like VeriFone and Ingenico on board to ensure the retailers can easily offer PayPal options to shoppers.

Under the Discover deal, to offer PayPal, merchants will not have to install or upgrade existing point-of-sale hardware or software. Consumers will know of the new payments option through in-store signage.

Don Kingsborough, VP, retail, PayPal, says: "This relationship quickly extends PayPal's reach to millions of merchant locations nationwide and is a milestone moment for us that will create new benefits for Discover merchants without requiring new hardware or software."

Diane Offereins, president, Discover Payment Services, adds: "The establishment of this relationship is a major industry milestone, which will help shape the emerging payments landscape by bringing together an established direct banking and payments company with a leading commerce enabler to create an alternative payments option for consumers at the point of sale."

Gaining immediate access to so many locations gives PayPal a major boost in its battle for the high street with the likes of Google Wallet, Isis and Square, which recently made waves by striking a deal with just one - albeit it major - retailer, coffee chain Starbucks.

Comments: (1)

Alexander Peschkoff - TEDIPAY - London | 22 August, 2012, 14:51 Am I missing something here: if POS terminals are not equipped for manual data input, than the only option is a physical card - nothing to write home about. Google offers a virtual (MC) card as part of their wallet, they can issue a physical one too (and MC > Discover). Besides, how many (big) merchants would want to waste valuable time by letting consumers fumble with manual input? If PayPal were to offer additional features, linked to a mobile, then it could be interesting. But Google and Square have done that already, in a better way.
Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
Comment on this story (membership required)
Log in to receive notifications when someone posts a comment

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board, sign up now.

Related blogs

Create a blog about this story (membership required)

Related stories

22 August, 2012
20 August, 2012
10 August, 2012
08 August, 2012
18 July, 2012
30 May, 2012
24 May, 2012
04 May, 2012
05 April, 2012
29 March, 2012
16 March, 2012
05 March, 2012
29 February, 2012
27 February, 2012
17 January, 2012
20 December, 2011
25 November, 2011
15 September, 2011

Related company news

Your browser is unable to support Flash files.

Top topics

Most viewed Most shared
Fintech rising: Resistance is futile, says...
10489 views comments | 48 tweets | 40 linkedin
Digital transformation driving earnings at...
8877 views comments | 42 tweets | 35 linkedin
ECB eyes up European P2P payments
7681 views comments | 28 tweets | 38 linkedin
Visa opens up to developers
7274 views comments | 23 tweets | 40 linkedin
It may take ten years, but blockchain tech...
6197 views comments | 20 tweets | 19 linkedin

Featured job

to $120K base, double OTE, benefits
New York City, NY or Boston, MA (USA)

Find your next job