PayPal, Discover to partner on in-store payments
Millions of stores to accept PayPal accounts in second quarter 2013
Computerworld - PayPal and Discover said 7 million merchants accepting Discover credit cards will begin accepting payments for in-store purchases from PayPal's 50 million users starting in the second quarter of 2013.
PayPal called the announcement an extension of its strategy that is already deployed at nearly 2,000 Home Depot stores and 15 other retailers, PayPal said in a blog posted Wednesday. "We'll get consumers used to using PayPal everywhere they want to shop," said Don Kingsborough, vice president of retail for PayPal, in a conference call.
Home Depot's system allows a customer to pay for items with a PayPal account by simply typing a mobile phone number and PIN to transfer money stored with PayPal.
Kingsborough explained that PayPal will also provide its customers with physical cards that can be swiped to make a payment at merchants that accept Discover card payments. Both the mobile number and PIN and the PayPal card will access the user's PayPal account in the cloud, and the card will only serve as an access token, Kingsborough said. PayPal accounts can be linked to a customer's checking account, as well as to gift cards and traditional credit cards.
PayPal has been working with the 145 banks that supply the credit for Discover's customers to ensure full adoption of the in-store relationship between Discover and PayPal, Kingsborough said. He didn't offer details on how much PayPal will charge merchants for the transactions, although Home Depot has said the relationship with PayPal lowers the "abusive" bank fees it pays for traditional credit-card transactions.
While the Discover deal clearly helps PayPal expand beyond its traditional role for making online purchases, Discover said it will be giving its customers the flexibility of using PayPal as well. Discover will also benefit by potentially diverting customers away from using Visa and MasterCard to make payments.
Matt Hamblen covers mobile and wireless, smartphones and other handhelds, and wireless networking for Computerworld. Follow Matt on Twitter at @matthamblen or subscribe to Matt's RSS feed. His email address is email@example.com.
Read more about Mobile Payments in Computerworld's Mobile Payments Topic Center.
- 15 Non-Certified IT Skills Growing in Demand
- How 19 Tech Titans Target Healthcare
- Twitter Suffering From Growing Pains (and Facebook Comparisons)
- Agile Comes to Data Integration
- Slideshow: 7 security mistakes people make with their mobile device
- iOS vs. Android: Which is more secure?
- 11 sure signs you've been hacked
- Is Your Big Data Solution Production-Ready? Read "Is Your Big Data Solution Production-Ready?" now, and discover best practices and actionable steps to implementing a production-ready big data solution.
- Pay-as-you-Grow Data Protection: IBM Tivoli's Full-featured Data Protection Suite for Small to Medium Businesses IBM Tivoli Storage Manager Suite for Unified Recovery gives small and medium businesses the opportunity to start out with only the individual solutions...
- Streamline Data Protection with IBM Tivoli Storage Manager Operations Center IBM Tivoli Storage Manager (TSM) has been an industry-standard data protection solution for two decades. But, where most competitors focus exclusively on Backup...
- Simplify and Consolidate Data Protection for Better Business Results Learn about IBM® Tivoli® Storage Manager Operations Center, which provides advanced visualization, built-in analytics and integrated workflow automation features that leapfrog traditional backup...
- Webinar: Building a Big Data solution that's production-ready Big data solutions are no longer just a nice-to-have.
- Meg Whitman presents Unlocking IT with Big Data During this Web Event you will hear Meg Whitman, President and CEO, HP discuss HAVEn - the #1 Big Data platform, as well... All Mobile Payments White Papers | Webcasts