eBay's PayPal and Discover are partnering together in payments processing, a win-win deal which gives PayPal instant access to thousands of new merchants while elevating Discover brand's relevence among big-name competitors Visa, MasterCard and American Express. This deal introduces the idea of paying with PayPal at retail locations, and will be crucial for widespread adoption of mobile payments processing in general.
The ultimate winner in the mobile payments playing field will be the company that succeeds in reaching the highest critical mass, and the key factor will be less about the product than about widespread acceptance and trust in the brand. PayPal, already a household name for years as a leader in online payments processing, is well positioned to hit that critical mass now that it's teamed with Discover. Mobile payments are expected to grow to $600 billion in the next four years alone, and this duo has what it takes to dominate a huge portion of that market.
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Austin Smith owns shares of eBay. The Motley Fool owns shares of Google and MasterCard. Motley Fool newsletter services recommend eBay, Google, Home Depot, and Visa. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.