Blockbuster strikes deal with PayPal

PayPal has added Blockbuster to its list of clients

Video rental chain Blockbuster has announced a deal with online payment service PayPal.

The partnership will allow customers to purchase subscriptions for Blockbuster's online movie rental service.

The company eventually plans to extend the programme to the purchase of DVDs, gift cards and gift subscriptions.

As part of the promotion, Blockbuster will offer customers a $10 discount for signing up with the PayPal programme.

Blockbuster is attempting to build its presence as a web-based video outlet. The company's once dominant chain of video stores has suffered in recent years with the rise of internet-based rivals such as Netflix.

Blockbuster also plans to launch a video download service later this summer which will incorporate PayPal options.

"As one of the leading online and offline video entertainment providers, Blockbuster's service is a natural fit for millions of PayPal's savvy online shoppers," said Mary Anne Gillespie, vice president of sales at PayPal.

"We are excited to add Blockbuster.com to the growing list of leading online retailers accepting PayPal."