Discover Financial Services and PayPal inked a deal in which PayPal will be more available to Discover card members, acquirers and merchants.
According to PayPal, under the agreement, PayPal gets access to Discover’s tokenization services, which will expand the reach of PayPal at the point of sale. U.S. PayPal customers can pay with their Discover cards on all of the contactless enabled merchants that take Discover as a payment method. What’s more, the two are enabling PayPal customers with eligible Discover cards to use their Cashback Bonus to pay for merchandise online and at mobile merchants that accept PayPal. Discover card members will also be able to view and use available Cashback Bonus when paying with PayPal for all or some of its purchase.
“Discover is focused on making the payments experience seamless and secure for both card members and our merchant partners,” said Diane Offereins, president of payment services at Discover, in a press release. “This agreement with PayPal helps expand consumer payment choices by providing additional ways to transact, and builds on the growing adoption of digital payments.”
“The agreement with Discover leverages each company’s core assets [and] will add value to everyday spending and deliver great customer experiences,” said Bill Ready, chief operating officer, PayPal added in the same press release. “Discover has been a long-term strategic partner for PayPal, and we expect that collaborative relationship to continue as we work to offer our joint customers more choice and increased value online, in app and in store.”
The companies noted Discover cards will be presented as a clear payment option within the PayPal wallet, making Discover easily identifiable to card members when paying. In July Visa and PayPal announced a strategic partnership that will combine the power of the largest payments network in the world with the largest digital payments network in the world to give consumers more choice about how they pay when using their PayPal accounts.