News by Andrew Kameka on Wednesday August 22, 2012.
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Online payment processor PayPal is partnering with credit giant Discover to further extend its reach offline. The new partnership, which is set to launch in 2013, will allow merchants who already accept Discover credit cards to accept PayPal payments as well.
PayPal did not indicate exactly how its mobile payment solution will work, but it did say that merchants who already accept Discover would not need to upgrade their existing point-of-sale hardware or software. This provides an advantage for PayPal because many mobile payment solutions often require an upgrade to sales terminals. Partnering with Discover would create less friction and make it easier for stores to accept PayPal.
The deal may also lead to payment data being used to pitch offers to consumers. In a conference call held earlier today, PayPal VP of Retail Don Kingsborough had this to say:
"Whatever the retailer is passing over the lines today in this initial phase, we'll get that data. it's been our data policy to be an enabler at eBay. We believe that the data is that of the retailers, and we would not use that information to share with other retailers. But at the same time, when you combine it with our online and mobile information, it becomes very powerful information that we can use with the retailers to help build strong relationships with the consumer, and to see the consumer in different ways. [It can] give us insights that will make the kinds of offers and other things that we plan o doing to become highly relevant to them."
Discover and PayPal plan to launch their payment initiative in the second quarter of 2013.source: PayPal
Andrew is based in Miami, Florida.