Merchant acquirer Vantiv Inc. announced that it is expanding its relationship with Discover Financial Services. The two will work together to to support PayPal In-Store checkout at Vantiv's brick-and-mortar merchants using the Discover Payment Services infrastructure.

According to the companies, the agreement builds on Vantiv's deep relationship with Discover and will be aimed at opening the doors of their respective brick-and-mortar merchants to PayPal's 50 million active U.S. accountholders and the PayPal mobile wallet starting next year.

"We are pleased to expand our relationship with Discover," said Vantiv CEO Charles Drucker. "This is a win-win for both companies; it demonstrates Vantiv's unique position to support new entrants through our single processing platform, and Discover's unique position to support real change and innovation within the industry. I believe this expansion of our relationship is a testament to both companies' focus on innovation and commitment to bring choice and convenience to merchants and consumers."

Discover announced last month a partnership with PayPal to accelerate PayPal's entry into the offline space. The deal gives PayPal access to the points of sale at more than 3,000 retailers that accept Discover Cards. Additionally, Discover serves as the merchant acquirer to more than 1,500 retailers in the U.S. Through Vantiv, Discover will help PayPal increase its reach by accessing Vantiv's merchant base.

"Vantiv is a strong partner in our effort to facilitate PayPal In-Store checkout at millions of merchant locations in the U.S.," said Diane Offereins, president of Discover Payment Services. "The team quickly recognized the strategic value of offering PayPal In-Store checkout to their brick-and-mortar merchants, and the importance of being a first mover in bringing an innovative new technology to a competitive multi-channel payment marketplace."

For more stories like this, visit the mobile/virtual wallet research center.