PayPal is collaborating with Discover to facilitate PayPal payments for participating in-store locations in 2013 (view press release). This means that PayPal will be offered as a payment option at around 7 million merchant locations across the US where Discover is accepted. Merchants will not have to install or upgrade existing PoS hardware or software to offer PayPal while consumers will know of this additional payment option through in-store signage.

"We're delighted to enable PayPal's efforts to provide their U.S. customers acceptance at millions of physical point-of-sale locations by leveraging our unique payment services assets. The establishment of this relationship is a major industry milestone, which will help shape the emerging payments landscape by bringing together an established direct banking and payments company with a leading commerce enabler to create an alternative payments option for consumers at the point of sale," said Diane Offereins, President of Discover Payment Services. “This initiative will result in real change and innovation for the industry by bringing new technologies to the point of sale that benefit merchants and PayPal customers."