US-headquartered First American Payment Systems plans to partner with PayPal, enabling participating merchants to accept PayPal at brick-and-mortar locations.

First American, the merchant credit card processing acquirer, is expanding its relationship with Discover Financial Services – a US direct banking and payment services company.

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Discover Financial Services has chosen to collaborate with PayPal so that its customers can pay at many retail locations across the US.

First American Payment Systems chief executive Neil Randel said: "Offering PayPal for in-store checkout will allow First American merchants to accept a new payment method while attracting existing PayPal users to the card present environment, leading to sales growth opportunities for our merchants."

First American Payment Systems processes electronic transactions for over 140,000 merchants in the US and Canada.

Its merchants are among the first US businesses able to accept PayPal’s new payment card.

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