In another sign that mobile payments are going mainstream, PayPal on Wednesday announced a deal with Discover that will expand PayPal's footprint to 7 million merchants next year.
Starting in April 2013, participating merchants who offer Discover will begin accepting payments from PayPal's 113 million active users. In a press release, the companies said merchants won't have to install or upgrade existing point-of-sale hardware and software to accept the payments. Instead, in-store signage will make customers aware of the capability.
The deal comes on the heels of another major industry announcement -- Square's partnership with Starbucks, which will adapt the former's mobile payment system to the chain's stores this fall. However, Ken Paterson, the VP of research at Mercator Advisory Group, told AllThingsD that the PayPal deal was potentially larger since it will ultimately reach more consumers.