PayPal is moving forward with its in-store mobile payment program and one of its retail partners is big box home improvement store Home Depot.

News of Home Depot's participation began with speculation in a note from Gil Luria, an analyst with WedBush Securities, to investors. PayPal confirmed the news that it's running a small trial involving five stores and open to PayPal employees.

Participants in the program can pay for purchases at the point of sale using a PayPal-issued credit card or the mobile phone number associated with their PayPal accounts along with a PIN.

A promotional video by PayPal released in September shows an example of PayPal's offline payment method. (Go to 1:27 to see a PayPal customer pay using his PayPal account at "GoValue Hardware.")

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