Soon you will be able to use your PayPal account to make purchases at millions of physical retail outlets across the country, thanks to a recent collaboration between merchants and Discover.

Beginning in 2013, more than seven million retail locations inside the continental United States will start taking payments through PayPal in hopes of driving more customers to shop at brick and mortar establishments.

This collaborated effort will broaden the current scope of PalPal, which is currently accepted at 16 national retailers, such as Abercrombie & Fitch, Barnes & Noble, Foot Locker, Guitar Center, Jamba Juice, Office Depot, Tiger Direct and Toys "R" Us.

"The establishment of this relationship is a major industry milestone, which will help shape the emerging payments landscape," said Diane Offereins, president of Discover Payment Services.

Retail outlets are expected to give their customers a heads-up on the new payment option through in-store signage.

According to PayPal’s vice president of retail, Don Kingsborough, "This relationship will deliver a truly seamless digital wallet, available most places consumers shop offline, which offers the speed, simplicity and security already enjoyed by 113 million active PayPal customers online."

More From TSM Interactive