TSYS has agreed to process PayPal payments made through the eBay subsidiary's partnership with Discover.

PayPal's partnership with Discover is a key part of PayPal's strategy to extend its digital payments service to the point of sale. PayPal already signed on several major retailers to accept payments using a swiped PayPal card or a phone number and PIN, and its deal with Discover will make PayPal's technology an option for Discover merchants. The addition of TSYS adds substantial processing heft, along with access to other TSYS services for merchants in the contiguous U.S.

"By processing PayPal transactions, TSYS is providing an expanded payment option for merchants' customers and an overall enhanced payment experience for consumers," says Diane Offereins, president of Discover Payment Services, in an Aug. 26 press release.

PayPal also recently partnered with Mercury Payment Systems to bring in-store payments to small and medium sized businesses; and Alliance Data to connect digital PayPal payments to retail cards.

"We believe PayPal provides merchants and consumers more choices and helps reach new consumers at the point of sale, relying on our robust payment transaction processing platforms, as well as other value-added products and services," says Mark Pyke, president of TSYS' Merchant Services segment, in the press release.

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