The credit card and online transaction company will now be working together.
The world of mobile payments has added a new level of drama with the partnership that has just been announced between Discover and PayPal.
This has added yet another level to the explosion in the marketplace where smartphones replace cards.
Although there have been regular changes to the mobile payments world as this market emerges, until now, there hasn’t been a single announcement that is quite as powerful as this one in terms of providing a competitive advantage above and beyond what its rivals had to offer.
PayPal’s partnership with Discover will enable mobile payments transactions at locations across the U.S.
In fact, this will be making it possible for mobile payments to be accepted at more than 7 million American retail locations. This is a massive step toward bringing online purchasing into transactions occurring at the checkout counters of brick and mortar store locations.
According to a spokesperson at PayPal, Anuj Nayar, “This is not technology for technology’s sake.” He went on to state that “This is about removing friction from the retail process and giving consumers more options.”
The agreement between the two giants has sent the shares of both eBay (the parent company of PayPal) and Discover to heights that have not been seen in over a year.
This partnership is only the latest in many that PayPal has been making in its efforts to dive ever further forward in mobile payments. Moreover, there have been a number of other announcements made by rivals as of late, such as the creation of the Merchant Customer Exchange (MCX), which was formed by a large group of massive retailers, including BestBuy, Target, and Walmart.
PayPal had only just announced a deal with McDonald’s where the fast food giant would be testing its mobile payments in forty French restaurant locations. That news was released just shortly after Square, revealed that they had inked a deal with Starbucks. The industry is exploding at such a rate that more partnerships and agreements are being announced with each passing day, placing tremendous power into the hands of smartphone carrying consumers.