San Jose, Calif. -- PayPal, the online payments arm of San Jose-based eBay, said on Wednesday its service will be available in more than 7 million brick-and-mortar locations in the U.S. beginning in 2013 through a new partnership with credit card company Discover. Under the deal, participating merchants will be able to start accepting PayPal through their existing relationships with Discover. PayPal called the agreement a "milestone moment" for the company, which allows people to send money without sharing financial information. The company currently has more than 113 million active accounts online. "This initiative will result in real change and innovation for the industry by bringing new technologies to the point of sale," said Diane Offereins, the president of Discover Payment Services.