PayPal has revealed plans to enter a partnership with US-based direct banking and payment services company Discover Financial Services.
Under the terms of the deal, by the end of 2013, PayPal will be accepted as a payment option in 2 million US retail stores that already accept Discover credit cards.
Shoppers will have access to funds they have directly in their PayPal accounts, whether from their own bank accounts or money from other people along with any credit or debit cards. Consumers can also link gift cards and coupons to the wallets and set up rules for which accounts they want to draw from depending on the size of a transaction or where you spent the money.
PayPal users will be able to pay at merchants on the Discover Network by swiping their new cards through existing checkout machines and entering a four-digit PIN. The newly launched cards will have a Discover Issuer Identification Number, or IIN, a code that identifies the card holder. Discover has already set up the IINs for the PayPal cards on its network.
PayPal has recently expanded its business operations beyond the online space by introducing in-store payments. In 2012, the company has partnered more than 15 retailers, including Home Depot and Office Depot. Both companies have also revealed plans to expand their agreement outside the US in the future, in case the agreement goes well.
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