23 February 2017
Visit EBAday.com

PayPal taps Discover network to reach millions of US stores

22 August 2012  |  7475 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.
KeywordsEFTPOS

Comments: (1)

Alexander Peschkoff
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)

Finextra news in your inbox

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

Related stories

Square payments hit by outage

Square payments hit by outage

22 August 2012  |  7531 views  |  0 comments
McDonald's tests PayPal mobile payments

McDonald's tests PayPal mobile payments

20 August 2012  |  10088 views  |  0 comments
Google, carriers, banks and card schemes join mobile payments committee

Google, carriers, banks and card schemes join mobile payments committee

10 August 2012  |  10382 views  |  3 comments
Mobile innovators Square and Starbucks team up

Mobile innovators Square and Starbucks team up

08 August 2012  |  8717 views  |  1 comments
PayPal acquires card scanning startup card.io

PayPal acquires card scanning startup card.io

18 July 2012  |  6839 views  |  0 comments
PayPal Here signs up 200k merchants in weeks

PayPal Here signs up 200k merchants in weeks

04 May 2012  |  11478 views  |  0 comments
PayPal ditches Web label as it makes play for high street transactions

PayPal ditches Web label as it makes play for high street transactions

05 April 2012  |  8089 views  |  0 comments
PayPal names mobile man David Marcus president

PayPal names mobile man David Marcus president

29 March 2012  |  6552 views  |  0 comments
PayPal launches Square rival

PayPal launches Square rival

16 March 2012  |  11643 views  |  4 comments
Isis signs up terminal manufacturers

Isis signs up terminal manufacturers

05 March 2012  |  10334 views  |  0 comments
Home Depot to roll out PayPal in-store payments nationally

Home Depot to roll out PayPal in-store payments nationally

29 February 2012  |  8200 views  |  0 comments
Isis signs Chase, Capital One and Barclaycard to mobile wallet

Isis signs Chase, Capital One and Barclaycard to mobile wallet

27 February 2012  |  17162 views  |  0 comments
Ingenico brings PayPal option to POS terminals

Ingenico brings PayPal option to POS terminals

17 January 2012  |  9384 views  |  2 comments
PayPal trials mobile NFC payments in Sweden

PayPal trials mobile NFC payments in Sweden

20 December 2011  |  9922 views  |  0 comments
PayPal goes after the high street

PayPal goes after the high street

15 September 2011  |  13790 views  |  1 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
Visit contisgroup.com visit BNP paribas

Top topics

Most viewed Most shared
hands typing furiouslyBlockchain Technology
12832 views 1 | 13 tweets | 6 linkedin
EBA to relax controversial PSD2 authentication rulesEBA to relax controversial PSD2 authentica...
11115 views comments | 51 tweets | 69 linkedin
RBS to become fintech fund and high street outlet for challenger banks under HMT remedyRBS to become fintech fund and high street...
7943 views comments | 40 tweets | 33 linkedin
Standard Chartered connects corporate customers to WeChatStandard Chartered connects corporate cust...
6219 views comments | 17 tweets | 19 linkedin
High rate of defaults hit P2P lending sectorHigh rate of defaults hit P2P lending sect...
6107 views comments | 17 tweets | 13 linkedin

Featured job

Six Figure Base + Commission + Stock Options
London

Find your next job