Discover Financial Services and PayPal said pre-market Wednesday that they’ve signed an agreement making PayPal more widely available to Discover cardmembers, acquirers and merchants.
The agreement provides PayPal with access to Discover’s tokenization services, expanding PayPal’s reach at the point of sale, which will enable U.S. PayPal customers to pay with their Discover cards at all of the contactless-enabled merchants that accept Discover.
“The agreement with Discover leverages each company’s core assets, will add value to everyday spending, and deliver great customer experiences,” PayPal COO Bill Ready said in a statement.
As part of the agreement, Discover and PayPal plan to enable PayPal customers with eligible Discover cards to use their Cashback Bonus to pay for purchases at the millions of online and mobile merchants that accept PayPal.
After enablement, Discover cardmembers will be able to view and use their available Cashback Bonus while using PayPal to pay for all or part of a purchase.