PayPal is in the process of a major expansion of their in-store payment service.

We told you that PayPal was running a trial of this service back in January. They started with a number of Home Depot stores. Within a month it was expanded to include Office Depot stores. In March PayPal reported that they were opening the service up to local mom and pop shops through use of an app and scanner that can be attached to an iPhone or Android device. According to David Marcus, the president of PayPay, more than 300,000 small businesses have signed up for the service, called PayPal Here.

Yesterday, PayPal announced that they have inked deals with VeriFone and Equinox to integrate PayPal into the payment terminals they manufacture. According to PayPal, VeriFone is the number 1 maker of point-of-sale (POS) terminals. Equinox is number 3.

On top of that, they also said the PayPal in-store payment service is expanding to 15 more major retailers. The stores that will be part of this expansion include JC Penny, American Eagle Outfitters, Abercrombie & Fitch, Barnes & Noble, Toys R Us, Jos. A. Bank, Jamba Juice, TigerDirect, Advance Auto Parts, Foot Locker, Nine West, Guitar Center, and Aeropostale.

One of the more interesting features of the PayPal in-store payment service is that it does not require the use of a plastic card. The shopper can authorize a payment by entering their phone number and a pass code.