PayPal's In-Store Payments Go Live On Discover's Network April 19

PayPal's in-store payments system will be available at all stores that accept Discover (NYSE:DFS) cards starting Friday, April 19. That's what PayPal VP of retail services Don Kingsborough told an industry conference on Monday (April 8), according to PaymentsSource.

"This is not years away, this is days away," Kingsborough said in a presentation at the SourceMedia Card Forum & Expo in Boca Raton, Fla. Sources inside PayPal had already confirmed that eBay's (NASDAQ:EBAY) online payments service would be ready to handle payments through Discover by the end of March.

Discover has been serving as the payment network for about two dozen national retailers that are currently set up to take PayPal in-store. However, those chains have specially configured POS PINpads to handle PayPal's system, in which customers key in a phone number plus PIN instead of swiping a mag-striped card. With the expansion, the number of locations accepting the PayPal system will grow from 18,000 stores to about 90 percent of bricks-and-mortar merchants that accept payment cards in the U.S.

PayPal has 117 million active users, but using the in-store payments system requires special activation, so not all PayPal users will begin using the system at once on April 19. That's probably a good thing—based on previous experience with contactless cards, cashiers and store associates are likely to have no idea how to handle anything other than a conventional card-swipe payment. While most large chains have been able to accept contactless cards for years, it's still common for cashiers to admit they've never seen customers use them.

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