PayPal has agreed to distribute CashStar digital gift cards through the eBay marketplace and the PayPal Digital Gifts store.

Portland, Me.-based CashStar develops a network of digital gift cards from restaurants and retailers.

"We’re excited to work closely with PayPal and our top retailer and restaurant client brands on this solution," Ben Kaplan, CashStar president and CEO, said in a Dec. 22 press release.

As digital, mobile and social innovations change the way consumers shop, digital gift cards thrive "because of their ability to move seamlessly across channels," Kaplan added.

CashStar expects the relationship with PayPal to generate more retailer relationships and increase sales, Kaplan said.

In July, CashStar established a process for consumers to add e-gift cards to a mobile wallet. Google was the first to integrate it with a "Save Gift to Google" button on the merchant's app. 

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