Market Overview

Paypal Partners With Discover to Begin Processing Paypal Transactions in 2013

Paypal, an online payment platform owned by eBay (NASDAQ: EBAY), announced a new partnership with Discover (NYSE: DFS) to begin processing Paypal transactions in 2013.

In January of this year, Paypal began testing its new payment method in Home Depot (NYSE: HD) stores. When making purchases, customers could enter their mobile phone number and personal identification number (PIN) to pay for their goods as a new option besides credit and debit cards or cash.

On a call this morning, Paypal Vice President Don Kingsborough said the service is projected to start in the second quarter of 2013. Paypal plans to begin with a Paypal branded card before moving to a digital wallet.

Kingsborough went on to say that the digital wallet will allow retailers to offer incentives to users and will incorporate PayPal's "Bill Me Later" feature.

This move into the digital wallet segment comes with little surprise after Target (NYSE: TGT), Walmart (NYSE: WMT) and 7-Eleven announced partnerships to create a digital wallet offering in early August. Paypal will become the second major competitor to Google's (NASDAQ: GOOG) wallet, and with its already massive user base, should provide formidable competition.

eBay has rising consistently month over month in 2012 for a cumulative growth of just over 60 percent in share price. This move could very well help continue that growth.

Ebay traded up 3.6% Wednesday morning to near $47.53

Posted-In: Don Kingsborough google wallet PayPalNews Guidance Management Events Intraday Update Movers Tech

 

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