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eBay Appears Poised For Growth Through PayPal Expansion

Now, Paypal is expanding its presence in the offline marketplace, as well. On April 19, PayPal's partnership with Discover (DFS) officially kicked in, meaning that by the end of the year, PayPal users will be able to pay by entering a phone number and a PIN at roughly 2 million stores currently accepting Discover.

These retailers currently include Abercrombie & Fitch (ANF), Dollar General (DG), Foot Locker (FL), Home Depot (HD) and J.C. Penney (JCP), among others. Last month, PayPal announced a partnership with RadioShack (RSH) that brought Paypal into all 7,000-plus of the retailer's stores. And by the end of the year, additional merchants such as Burger King (BKW), Sephora and Brookstone will be accepting PayPal in stores.

PayPal's agreement with Discover is significant not only for the impact of the retailers immediately added to the PayPal network, but also for the benefit of the clout Discover has with more than 1,500 of the largest retailers in the U.S. Discover has been negotiating with these retailers to accept PayPal, and recently signed Nordstrom (JWN) to accept PayPal in-store payments.


eBay and PayPal have been at the forefront of e-commerce payments and the mobile e-commerce revolution. As I've stated before, I believe the growth we've seen in PayPal thus far is only the tip of the proverbial iceberg.

PayPal's foray into offline payments in retail stores might not work out in the long run. But its history of growth and innovation, along with its 128 million strong user base gives the company a distinct advantage over any of its current online competitors.
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