Credit-card processor TSYS has entered the world of PayPal through an agreement with Discover.
The Columbus-based company said Monday the new business stems from an August 2012 deal that gave PayPal access to bricks-and-mortar merchants that use Discover’s infrastructure.
PayPal, owned by online merchant eBay, has traditionally operated as a third-party source for exchanging money safely between Internet businesses and consumers. It also allows cash transfers between individuals.
TSYS said it will process PayPal transactions for Discover in the contiguous United States. Terms of the contract were not released.
“We are extremely pleased to support PayPal’s expansion into more physical merchant locations,” Mark Pyke, president of TSYS’ Merchant Services operation, said in a statement. “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.”