PayPal partner with Discover in the US

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PayPal have had a bit of a coup and inked a deal with Discover in the US. Discover is a major US credit card provider and along with a recent series of strategic partnerships with Visa, Mastercard, Citi, FIS, Facebook, and many others aims to get consumers paying with PayPal.

The new agreement will make it easier for PayPal customers to use Discover as a funding option within the PayPal Wallet, and let eligible customers pay with their Discover Cashback Bonus at all the places that accept PayPal.

Unlocking the Cashback bonuses is a big opportunity as US consumers have nearly $50 billion tied up in rewards value. PayPal will be enabling consumers to use their rewards when they shop with any of PayPal’s 15 million merchant accounts around the world (and for PayPal to earn fees in the process).

The agreement also provides PayPal access to Discover’s tokens, enabling shoppers to use PayPal to make in-store purchases at all Discover contactless-enabled merchants in the US. It is anticipated this new agreement may drive incremental spend for both companies.


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