More details on Home Depot, PayPal deal

John Donahoe, president and CEO of eBay, during a Jan. 18 earnings call expanded on the test of PayPal with retailer Home Depot. 

A division of EBay, PayPal is experimenting with extending its on-line payment system to point-of-sale retail locations. In the fourth quarter of 2011, it chose Home Depot as its first national retailer for a limited test at five stores. PayPal plans to widen the pilot to 51 stores in the Bay Area by the end of the month, Donahoe said.

He explained to investors how the payment process worked by relating his own experience.

“I went down to Home Depot in San Jose this morning. I left my wallet and my cell phone in my car. I walked into the Home Depot -- and it was one of the five where we've got this pilot going. I picked up a hammer and picked up a tape measure, which I have right in front of me, walked into the checkout lane without my wallet, without my mobile phone. On the terminal, I pressed Pay with PayPal. I put in my mobile phone number and a PIN, and, boom, I was done.

"The receipt emailed to my email account, texted to my mobile phone, and I walked out. So it was a beautiful experience."

Donahoe went on to explain that PayPal is being built into the existing hardware at Home Depot. “It's as