PayPal Users Will Now Be Able To Buy Stuff In 7 Million Stores After Deal With Discover

Soon, anywhere you see a Discover logo, you’ll be able to use your PayPal account to buy everything from coffee to clothing in 7 million retail locations across the country. PayPal has been all about expanding its offline presence, and this next step is a pretty big push in that direction.

Here’s how it’ll work: PayPal will send out special new cards to its 50 million active users, that can be swiped at any stores accepting Discover. Customers will then enter a four-digit PIN to complete the transaction, which will be processed on Discover’s network.

The new service will start up next year, and will bolster PayPal’s already existing deals with the 15 major retailers that now accept PayPal mobile payments at their stores.

This is a win-win-win for all parties involved — customers who like using PayPal online already will have another choice in how to pay, PayPal gets more real-world presence and Discover will increase the volume of payments made on its network which could convince more merchants to accept Discover cards. Plus, it’s bound to make Visa, MasterCard and American Express totally jealous.

PayPal to offer in-store payments thru Discover [BusinessWeek]


Edit Your Comment

  1. Steevo says:

    Is there any demand for this? I doubt it.
    I don’t think PayPal users are storming Home Depot.

    • incident-man stole my avatar says:

      As of 2 weeks ago the HD near me had no idea how to use paypal to accept payment and the cashier said nobody had asked to pay that way

      • bigfry says:

        I used PayPal at Home Depot a couple months ago just to say that I had, and it was not particularly amazing, intuitive, or quick. The cashiers were somewhat familiar with the process (and I live in a hick town), but recommended against using it. It’s a convenient backup to have just in case, but no, it’s not something I’ll be using regularly in its current form.

    • hexx says:

      I agree. I don’t see a lot of demand. And I don’t really see much benefit.

  2. popminion says:

    Paypal .. now Bitcoins.

  3. AcctbyDay says:

    And yet Paypal is not regulated like a bank.

    • dicobalt says:

      Then they wouldn’t be able to freeze accounts and steal your money.

    • Blueskylaw says:

      I love adding layers of complexity and middlemen to my life by choosing to use Paypal when using a Discovercard was simple enough. I also have protection when using Discover. I consider Paypal to be the Twilight Zone equivalent of the bank that steals from the robbers.

    • Geekybiker says:

      Here’s hoping that this partnership will mean more regulation for paypal.

    • Biokinetica says:

      That’s because they’re an escrow service.

  4. Auron says:

    Not that I have any intention of using this service…..but the big question is about consumer protection. Will purchases made this way fall under Discover’s protection or will we be bound by PayPal’s we’re-not-a-bank-so-we don’t-have-to-be-concerned-with-regulations protection? What happens in the case of chargebacks and any other disputes?

  5. Quirk Sugarplum says:

    Not only is it a win-win for all parties involved, it’s also a win for parties who have enough sense not to be. It’s a winfecta! o/

  6. nbs2 says:

    Didn’t I just read a story about Discover and PP not playing well together? I’d swear it was this morning.

  7. Loias supports harsher punishments against corporations says:

    I will be declining PayPal in over 7 million stores.

  8. dolemite says:

    “Do you take Visa?”
    “Visa hasn’t existed for five hundred years.”
    “American Express?”
    “Six hundred years.”
    “Discover Card?”
    “Hmm…sorry, we don’t take Discover.”

    • axhandler1 says:

      I use that line all the time whenever Discover credit cards come up in a discussion. Such a good episode.

  9. There's room to move as a fry cook says:

    How is this different than the current PayPal debit card?

  10. TasteyCat says:

    Even if I wanted to do this, I don’t want to give Discover my business.

  11. Back to waiting, but I did get a cute dragon ear cuff says:

    I don’t get this. Right now I have a paypal debit Mastercard that is accepted anywhere Mastercard is accepted. I have yet to find a place that does not take Mastercard that does take Discover.

    On top of that I get a small amount (1.5% I think) paypal back on all swiped and signed transactions (used like a credit card and not a debit card).

    The linked article is very light on details. If this is in addition to the debit Mastercard, big whoop. If this is going to replace it, that is another story.

    • Milquetoast says:

      I was about to say… I’ve been using my PayPal card for years without a problem. I don’t see what this offers me that I don’t already have. And MasterCard is more widely accepted than Discover, so it seems like a step in the wrong direction to me. But maybe I’m missing something.

      • There's room to move as a fry cook says:

        In March of this year PayPal moved it’s debit card processing from Chase to Bancorp. Use of Chase ATMs for cash withdrawls used to be free but after the move is now $3.

  12. Jim M says:

    Discover Card, the ginger card of the world.

  13. hexx says:

    PayPal already offers a “debit Mastercard” that you can use like a credit card (without entering a PIN). Funds are deducted from your PayPal account or a linked account which have you specified. I have one of these cards and I use it occasionally. I fail to see how this new card through Discover is any different except that it uses Discover instead of Mastercard.

  14. PragmaticGuy says:

    Now I would be really pissed if I ordered a sundae and someone put the whipped cream on the bottom. But the fudge is going to end up there anyhow as the ice cream melts as soon as it touches it.

  15. uncle moe says:

    sorry, but this may….may actually be something i would consider, possibly, maybe using.

    there’s a grocery store in my area that only accepts Discover – exact opposite of reality – and i end up paying with an old fashioned check every time. i hate paypal, but not as much as i hate waiting for a manager to approve my check.

    • hexx says:

      They only accept Discover? Wow, that is a strange one. I believe Discover has the lowest transacation charge which might explain why it’s the only card they accept.

  16. PragmaticGuy says:

    I don’t use Paypal but this is no different than a debit card. I would suspect you have to keep funds in the account in order for a purchase to go through so just use a credit card and the 25 plus day float it provides.

  17. Waltersinister3 says:

    Peter: Ha! Hey, Lois, Diamond Jim Brady over here just asked if we accept the Discover card.
    Lois: Oh, they’re in an exclusive club called anybody.
    No, no, no, I don’t think so.
    You know, you know, I would rather take two live chickens than your fly-by- night credit card.
    I would rather take a jar of pennies that’s value was less than that of your bill.

  18. SpammersAreScum2 says:

    They’re going to be sending out 50 million cards? Really? I couldn’t find anything in the linked article about that.

    And, no, sending me a card I didn’t ask for is not a “win”, ThankYouVeryMuch, and it will go back to them cut up. With a nasty note which will be nastier if I don’t get a heads-up email in advance from them about it.

  19. ancientone567 says:

    Just say No to PayPal. They are NOT your pal as the name implies.

  20. kouotsu says:

    What is confusing about this to me is, I’ve had a Paypal debit card for over a year that I can use ANYWHERE that accepts debit cards. The only necessity is that you link a checking account to it. It’s extremely useful as I do freelance and mainly get paid through Paypal, so I get the payment instantly and can spend it instantly as well. I just don’t understand why people who might want this Discover method don’t just get a Paypal debit card.

  21. MarkFL says:

    I don’t have a Discover card OR Pay Pal account, so I’ll still know that those e-mails about my Pay Pal account needing immediate attention are bogus.

  22. K says:

    Since I already have a PayPal Mastercard, does this mean it’ll be replaced with a PayPal Discover card? Seems like those two things can’t otherwise co-exist.

  23. glopezz05 says:

    It would be great if I could use it in stores the way I use it now. user id and enter my password. I wanted this feature when I went out for a bike ride and needed to buy some water at a gas station. Luckily I had cash but I don’t ride with creditcards.

  24. aleck says:

    So, there is yet another card I need to carry in my wallet to enjoy the convenience of having no credit card protection and a horrendous dispute process.

  25. Martha Gail says:

    I wonder how active you have to be to get the card. I have a really old account that I haven’t used in years. I really wouldn’t like that to accidentally go to an old address.

  26. canchita says:

    I bought an item on line and paid with PayPal. The item was never delivered. PayPal said the seller said they shipped and refused to reimburse me and they are asking for proof from me. How does one product proof of something that didn’t happen? I will never use them again and, buyer beware, they obviously don’t protect the rights of the purchaser.