PayPal ‘Discovers’ It’s Mobile Wallet

From @AmerBanker:

PayPal (EBAY) will soon extend its reach through Discover’s (DFS) network — enabling direct acceptance of its mobile wallet at more than seven million American merchants.

Up until now, the ecommerce unit of eBay has been inking individual deals with big box retailers, such as Home Depot, as well as terminal makers and middleware providers. This latest deal places PayPal in the same league as the issuing banks in terms of its ability to issue a card that’s accepted over an open-loop network.

The partnership, which was due to be announced Wednesday morning, will change the way PayPal handles those transactions as well. Once the system is live (in spring 2013, the companies say), Discover will be the network over which those payments ride, and PayPal will continue to process the transactions. Previously, PayPal did both jobs.

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