PayPal feels the threat from Apple’s mobile payment plans, says it ‘wants to help’

PayPal image

PayPal is clearly feeling the threat posed by Apple’s plans to use Touch ID to facilitate payment for physical goods from other retailers: re/code is reporting that the company has offered to help.

PayPal is essentially willing to white label parts of its payment service to be used in an Apple mobile payments system — anything from fraud detection to back-end infrastructure, even possibly down to the processing of payments.

“They’re telling them, ‘We’ll do it in the background,” one of these people said. “Basically, it’s just, ‘We want to be a part of this.’”

The plea is likely as desperate as it sounds, with two of the three payment industry execs re/code spoke to saying it’s unlikely Apple has any need of PayPal’s assistance. Apple has over 575 million iTunes accounts, most linked to credit cards, and already allows purchases from its own retail stores using the Apple Store app on iPhones. Apple also has patents in place for payment via both NFC and Bluetooth electronic wallet systems, so there doesn’t appear to be any part of the process the company couldn’t handle unaided.

PayPal’s relationship with Apple seems set to remain limited to that of a payment option for iTunes and online store purchases, and a reseller of iTunes gift cards.

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  1. Tim Jr. - 9 years ago

    Paypal is how I cover all my iTunes, App Store payments..

    Saying ‘PayPal’s relationship with Apple seems set to remain limited to that of a payment option for iTunes and online store purchases, and a reseller of iTunes gift cards.” is VERY misleading as thats everywhere you can buy something from Apple you can choose to use Paypal.. Only IN a physical store is where Paypal doesn’t go currently.. thats it.. everywhere else, Paypal exists in Apple’s payment system now.. I use them for BillMeLater as well….

    Or is that some how viewed as being limited? ha!

    • I have seen “Pay with PayPal” on credit card terminals for ages now. Does this mean with a PayPal credit card or with your account? I am not sure…

    • Ben Lovejoy - 9 years ago

      Sure, you can buy things online from Apple with Paypal, but that’s very different from Paypal wanting to run the back end of Apple’s payment systems with *other* retailers.

  2. ikonik1 - 9 years ago

    I think paypal and eBay are evil and believe they should sink because of the lack of customer satisfaction. They are greedy corporate giants and I’m all for Apple leaving them in the dust. eBay and paypal fees are already ridiculous. When Apple wants more profits they engineer new products to please and I believe the price set for those devices are fair. PayPal on the other hand doesn’t innovate, instead they just charge more for what they have been offering for years. Bad business model. I would give up Apple if they include anything paypal related into a phone or other device.

    • I could not agree more. I do not sell anything on eBay anymore due to fees. With the listing fee, the fee based on the amount and then the PayPal transaction fee, I was getting way less than the selling price. They are greedy, plain and simple.

      • A website full of smart commentators. For real PayPal/eBay are a terrible business, I hope they sink.

  3. I’m still in awe after all this time when there is a rumor that Apple is entering a market that every company in that space starts shitting in their pants. It’s incredible how much pressure even a rumor can exert on a market when Apple is involved.

  4. ikonik1 - 9 years ago

    Apple = Chuck Norris on steroids. They don’t need “help” from other companies that will be crushed by the freak of nature Chuck… I mean Apple has become. :-)

  5. mikhailt - 9 years ago

    I don’t mind Apple sherlock’ing Paypal. Paypal is horrible. I rather trust Apple with this than Paypal.

  6. Eric Swinson - 9 years ago

    While I do use paypal for many things, I just never feel certain about my transactions. Their policies just seem too ad hoc – even more so than a regular bank or credit card. Enforcing eBay polices on holds on funds and refunds to buyers without adequate means of dispute just leaves a bad taste in my mouth.

  7. mattafakt - 9 years ago

    PayPal are complete scumbags. I sold an iPhone and they refunded the BUYER his money because HE was suspected of suspicious credit card activity AFTER I shipped him the phone. So the scammer got a free phone and I got re-charged the selling price, overdraft fees and my credit cards banned. I will never advise that anyone does business with them. There are websites devoted solely to horrible Paypal experiences… and there are many.

  8. Jamie Lundquist - 9 years ago

    Could I get a link to the article the quote is pulled from?

  9. justbeamensch - 8 years ago

    Just a not to the Apple slappies on this thread: Apple is no less predatory than ebay or Paypal. Just ask the folks working in their sweatshops. I been with Macs since before horses were invented, but I hold no illusions about their corporate sainthood status. Like ebay and Paypal, you are nothing bu anothert drop in the bucket to them.


Avatar for Ben Lovejoy Ben Lovejoy

Ben Lovejoy is a British technology writer and EU Editor for 9to5Mac. He’s known for his op-eds and diary pieces, exploring his experience of Apple products over time, for a more rounded review. He also writes fiction, with two technothriller novels, a couple of SF shorts and a rom-com!

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