On August 22nd eBay, parent company of PayPal.com, announced that it had expanded a partnership with Discover Card that will enable PayPay customer to make purchases using their PayPal accounts at any merchant that accepts Discover Card. This is a substantial partnership given DiscoverCard’s 95% penetration into the U.S. market. This feature enables PayPal customers to have the ability to fully mange their digital wallets – giving them the ability to pay through PayPal, but fund their purchases through credit card, debit card, bank account or Bill Me Later. This merchant service rollout is schedule for the second quarter of 2013.
Prior to and after the rollout, all PayPal customers will be given the opportunity to request a PayPal credit card that can be swiped jsut like any traidtional credi card. As the market evoles PayPay will give merchants the option to use a callphone number and PIN instead of swiping a card. This move is how PayPal plans to expand and differentiate in the ecommerce, mobile ecommerce/digital wallet hyper-vertials of the merchant services processing industry.
