The shift in payment methods from credit cards, debit cards and cash to smartphones, tablets and other mobile devices is imminent. Research firm Gartner believes the space could be worth as much as $600 billion by 2016, and PayPal is clearly willing to take on Square, Visa (V), MasterCard (MA) and anyone else in the space.
PayPal may receive a percentage of each transaction for the right to run over Discover's network. With Discover's 7 million retail locations, this could be as significant a deal as PayPal has ever signed.
Just a couple of weeks ago, it looked as if Square had one upped the industry, getting a retail giant like Starbucks to use its services in its stores. With this news, PayPal is saying not so fast.
Things are about to get a lot more interesting in the mobile payments war.Interested in more on eBay? See TheStreet Ratings' report card for this stock. Follow TheStreet Tech on your wireless devices. --Written by Chris Ciaccia in New York >Contact by Email. Follow @Commodity_Bull
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV