Magento, the e-commerce platform developed by Varien, has extended its agreement with PayPal to offer the latter to online retailers via Magento’s open source shopping solutions.

Under the terms of the deal, PayPal will be integrated to merchants and developers using Magento’s service. Thus, merchants and developers who integrate Magento will have automatic access to PayPal’s global payment engine, which has more than 81 million active accounts globally.

The Magento e-commerce platform is based on open source technology that provides merchants with control over the user experience, content and functionality of their e-commerce channel. In January 2010, European online payments systems provider Moneybookers announced the integration of its payments service with Magento e-commerce platform.