San Jose, Calif. – PayPal, the online payments arm of eBay, plans to challenge Groupon and DC-based LivingSocial with a new deals service expected to launch in early 2012, Bloomberg reported.

The company, which has 103 million subscribers, reportedly plans to partner with large U.S. retailers to offer mobile coupons based on customer preferences.

Bloomberg said the offers will appear on users’ smartphones as they’re passing by stores.

“The experience is going to be completely different than anyone else’s through and through,” PayPal President Scott Thompson told the news service. “We’ll only give you something that we think fits the category of unique and relevant.”

This article was also published in Potomac Tech Wire.

Related links:

Bloomberg – EBay’s PayPal Counts on 103 Million Users to Target Groupon

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