Online transaction leader PayPal has teamed with Discover, the nation’s 4^th largest credit card issuer, to bring the eBay subsidiary payment transaction service more than 7 million brick and mortar stores by spring of 2013.

PayPal users will need to link their account to a Discover card, which will then take those transactions and run them through PayPal allowing users to choose to pay by credit/debit cards, bank account, or funds currently held within PayPal, and will even allow coupons and gift cards to be utilized.

Each user will be given a unique ID number and will have to create a four-digit pin number to verify transactions. Consumers will also have an option to connect their mobile phones to their accounts and use their phone number to make purchases.

Merchants aren’t required to update any software or install and new hardware to conduct these transactions, though they will have to voluntarily opt in. Merchants that participate will be given signs and door stickers to indicate that PayPal payments are accepted in their store. Processing fees will be paid to PayPal, which in turn pays Discover for using their network.

PayPay currently has more than 50 million users, so their entry into the tangible payment processing world will certainly add a new level of competition to the playing field.