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

  1. Tim Jr. says:

    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!

  2. ikonik1 says:

    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.

  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 says:

    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 says:

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

  6. Eric Swinson says:

    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 says:

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