Gigaom

PayPal (s ebay) has lined up the biggest partnership to date for its in-store payment campaign, tapping credit card company Discover (s dfs) in a deal that will ultimately bring PayPal payments to seven million merchant locations in the U.S. Under the partnership, PayPal will utilize Discover’s credit card network to enable PayPal users to make payments at retail stores starting in April of 2013.

This arrangement will greatly accelerate PayPal’s in-store payment efforts, which have so far focused on signing-up big name retailers like Home Depot(s hd). By riding on Discover’s network, PayPal can get into many more locations quickly, without requiring any significant integration work by merchants. That potentially puts PayPal at a big advantage against rival mobile payment systems such as Google Wallet (s goog), Isis, Square and others.

Discover is integrating PayPal’s payment system into its software, which will be uploaded to millions of point-of-sale terminals…

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