PayPal Partners With Discover Card to Expand Payment Network

PayPal expands the number of payment options available

PALO ALTO, Calif. - January 2, 2002 - PayPal (www.paypal.com) today announced an agreement with Discover Financial Services, a business unit of Morgan Stanley (NYSE: MWD) to expand the number of payment options PayPal users have. The agreement offers PayPal's 12 million users another method for sending and receiving online payments by adding the Discover(R) Card for secure Internet transactions.

"PayPal shares a common vision with Discover Financial Services -- to give our customers a safe, secure, and convenient payment method for online transactions," said Todd Pearson, Senior Vice President, Financial Services, PayPal. "By partnering with Discover Card, PayPal users get the added flexibility for online transactions with the convenience of a brand they know and trust."

"We are pleased that our more than 50 million Discover Cardmembers now have access to PayPal's extensive network of users and online businesses for their Internet transactions," said Tom Dailey, senior vice president, Discover Business Services. "This new convenient payment solution coupled with Discover Card's Cashback Bonus(R) Award is another example of Discover Card's commitment to providing our cardmembers with exceptional services and benefits."

PayPal is a popular payment network for online auction websites and is being increasingly used at other e-commerce sites for the sale of goods, services, and digital content. PayPal's network builds on the existing financial infrastructure of bank accounts and credit cards to create a global payment solution. PayPal members send more than $10 million per day in approximately 200,000 daily transactions.

PayPal
PayPal enables any business or consumer with an email address to securely, conveniently, and cost-effectively send and receive payments online. The online payments network builds on the existing financial infrastructure of bank accounts and credit cards to create a global payment system. PayPal offers its service to users in 37 countries including the United States. PayPal has more than 12 million registered users, including more than 2.1 million business accounts.

PayPal is a privately held company headquartered in Palo Alto, California. PayPal was a Webby Award nominee in both 2000 and 2001, and was named a Forbes Favorite Website in the magazine's May 2001 "Best of the Web" issue.

Discover Financial Services
Discover Financial Services, a business unit of Morgan Stanley Dean Witter & Co., operates the Discover Card brands and the Discover Business Services network for its more than 50 million Cardmembers. Discover Business Services is the largest independent credit card network in the United States with approximately 4 million merchant and cash access locations.

SOURCE: PayPal, Inc.