• Apple's Mobile Payment Initiative Seen as Largest Potential Threat to PayPal



    According to a research analyst, Apple’s upcoming mobile payments initiative could eventually give PayPal a run for its money. The Cupertino California company is reported have already inked deals with American Express, MasterCard and Visa along with having the support from retail outlets such as Nordstrom. The news is set to be unveiled on September 9th’s media event.

    Analyst Colin Sebastian from Baird issued a note calling Apple’s rumored ‘iWallet” the “elephant in the room,” noting the following:

    …while there is no shortage of competition in payments, we view Apple as perhaps the most legitimate potential threat to PayPal’s strong position.
    According to data from IDC, the market for mobile payments is expected to reach $1 trillion worldwide by 2017.
    Sebastian continued by observing that Apple appears to have “a strong base of existing customers that it could leverage for mobile payments.” He was referring to Apples’ more than 800 million iTunes accounts, most of which are tied to credit cards at the moment. Sebastian continued by writing the following:

    We believe Apple's closed-platform, software expertise, and brand power position it well. Additionally, integration with its anticipated wearable device could be a key feature. We believe mobile payments could be a significant opportunity.
    We’ll have to wait and see what Apple announces first and then see how it affects the industry afterwards.

    Source: Baird via AppleInsider
    This article was originally published in forum thread: Apple's Mobile Payment Initiative Seen as Largest Potential Threat to PayPal started by Akshay Masand View original post
    Comments 6 Comments
    1. Borosb's Avatar
      Borosb -
      This will be amazing for my business as I currently use a Swipe Card machine via. PayPal business and they charge me 5% per payment!
    1. Ambi_Valence's Avatar
      Ambi_Valence -
      For the user though, paypal works well, (in my experience), with problem sellers. I wonder how this will translate to the AppStore nasties.
    1. Borosb's Avatar
      Borosb -
      I think soon we will be able to walk into an Apple store, pick up an item, pay by swiping your phone over a member of staffs forehead with NFC and just walk out.....boom purchase successful 👍
    1. Jahooba's Avatar
      Jahooba -
      So... does this mean Apple will create some kind of ubiquitous iTunes payment system? Like, instead of checking out via Paypal at whatever online store, there will be a "Check out via iTunes" option?

      Heck, at this point I wouldn't be surprised if Apple launched a worldwide chain of Apple Banks. They certainly have enough money. They could open their own country at this point.
    1. cmwade77's Avatar
      cmwade77 -
      Quote Originally Posted by Borosb View Post
      This will be amazing for my business as I currently use a Swipe Card machine via. PayPal business and they charge me 5% per payment!
      Why would you do that instead of using Square at 2.75% for swiped and 3.5%+$0.15 for keyed transactions?

      With Square, the money gets deposited straight into your account within no more than two business days.

      Quote Originally Posted by Ambi_Valence View Post
      For the user though, paypal works well, (in my experience), with problem sellers. I wonder how this will translate to the AppStore nasties.
      PayPal works very poorly in my experience from both the consumer and seller side.
    1. exNavy's Avatar
      exNavy -
      Good I H A T E paypal. They don't like sellers at all in my not so humble opinion.
  • Connect With Us

  • Twitter Box

  • Facebook