• PayPal Cut Out from Apple Pay Due to the Company's Partnership with Samsung



    A recent report reveals that PayPal was in the running to be a prominent partner in Apple’s mobile payment initiative, Apple Pay, but ended up being cut out due to PayPal’s similar partnership with Samsung. The reports indicate that PayPal was eager to team up with Apple on their mobile payment solution, with the company even going as far as agreeing to “white label parts of its payment service” like fraud prevention and processing to get in on Apple’s digital wallet system. Talks were scrapped after PayPal partnered with Samsung to handle mobile payments for the Galaxy S5, which uses a fingerprint scanner to access digital wallet functions.

    The sources claim that Apple wasn’t pleased with PayPal’s partnership with one of the sources stating that “Apple kicked them out of the door.” After getting rid of PayPal as a possible solution, the Cupertino California company ultimately chose startup, Stripe, into the mix.

    The publication claims that former PayPal president, David Marcus, was against the Samsung partnership as it would potentially hinder future operations and opportunities with Apple (which is exactly what ended up happening). It was said that eBay CEO, John Donahoe forced PayPal to accept the deal. The dynamic becomes even more interesting given today’s news that PayPal will be spun off from eBay in 2015, which will possibly open the door to policy changes regarding digital wallet partnerships.

    For those who might have missed it or might have forgotten, PayPal even ended up running an ad that questioned how Apple could offer effective payments security in light of the then-current leak of personal celebrity photos gathered from iCloud. Despite this, Apple Pay may be one of the few solutions which can actually move the industry forward given the sheer influence Apple has on the tech world today.

    Apple Pay is set to go live in October at 220,000 retail locations and support from major credit card issuing banks and networks including Visa, MasterCard and American Express. The rollout may happen sometime very soon as iOS 8.1 was recently seeded to developers and contained a hidden Apple Pay settings menu, which suggests that the company is making final preparations for launch.

    Are any of you excited to use Apple Pay? How do you feel about the whole situation with PayPal? Share your thoughts and comments below!

    Source: BankInnovation via AppleInsider
    This article was originally published in forum thread: PayPal Cut Out from Apple Pay Due to the Company's Partnership with Samsung started by Akshay Masand View original post
    Comments 11 Comments
    1. Carvensno's Avatar
      Carvensno -
      Hey you snooze, you lose! Sounds like a bad top executive call. Ya I may wait to buy my Macbook Pro till Apple Pay gets released and pay for it that way LOL
    1. H4CK3R's Avatar
      H4CK3R -
      Cute...
    1. NSXrebel's Avatar
      NSXrebel -
      I just find it ironic and hilarious that they talk all this trash, but in reality they are butthurt because they really wanted in on Pay, but Apple kicked them to the curb!!
    1. Dranon's Avatar
      Dranon -
      Thats really too bad. I really like paypal for a couple of major things. 1. Payments come in and can stay in my account without going to the bank. I can send money digitally and use my Paypal debit card without ever having it hit my bank. 2. I can transfer money to my kids Paypal debit cards instantly when they need money while they are out and about. 3. Having my phone hooked up even more inttimately with this method would have made things even easier!
      I also have Square but do not like it as much. Google wallet is ALMOST there but thats not going to work in Apple ecosystem...

      ALSO didnt ebay BUY Paypal a few years ago? Now they are spinning it off?
    1. csglinux's Avatar
      csglinux -
      Quote Originally Posted by Dranon View Post
      Thats really too bad. I really like paypal for a couple of major things. 1. Payments come in and can stay in my account without going to the bank. I can send money digitally and use my Paypal debit card without ever having it hit my bank. 2. I can transfer money to my kids Paypal debit cards instantly when they need money while they are out and about. 3. Having my phone hooked up even more inttimately with this method would have made things even easier!
      Ok, I'm going to play Devil's advocate here, because I hate PayPal for a couple of reasons: 1. If something goes wrong with your transaction, you're screwed. PayPal claim they offer buyer protection, but they don't. 2. If you try to pay with your credit card through PayPal (because most credit card companies actually will refund you if you buy a product that's defective or never arrives, even if you use your credit card through PayPal), PayPal makes it as awkward as possible for you to switch payment methods. It used to be even worse. Remember the messages saying "Are you sure you'd like to pay with a credit card?" and "No, are you really sure?" and "Here are all the benefits of paying with a transfer from your bank account and not using your credit card: blah, blah, blah". Then when you still insisted you wanted to pay via credit card, you'd get a set of radio buttons which would alternate between:

      "Yes, I want to use my credit card"
      "No, I want to pay using my bank account"

      and

      "Yes, I want to still use my bank account"
      "No, I'd like to pay via credit card"

      i.e., they'd deliberately switch around the button that you needed to click to finally be able to use your credit card.
      To this day, there's no way of making your credit card the default payment method in PayPal.
      Sleazy ******bag company. I hope they crash and burn. Go Apple Pay!
    1. znbl's Avatar
      znbl -
      I'm sorry, I have a hard time buying Apple's reason here. PayPal has all sorts of partnerships and coops with thousands of companies, why would working with Samsung have any bearing what so ever?

      Hell, PayPal has been an options in the iTunes & App stores for a long time now, so I wouldn't be surprised if a lot of people expected it to also be an option for ApplePay. The lack of PayPal being an option there makes it feel incomplete and not quite ready yet for "prime time." As such, I feel this will be Apple's loss.
    1. Carvensno's Avatar
      Carvensno -
      Quote Originally Posted by znbl View Post
      I'm sorry, I have a hard time buying Apple's reason here. PayPal has all sorts of partnerships and coops with thousands of companies, why would working with Samsung have any bearing what so ever?

      Hell, PayPal has been an options in the iTunes & App stores for a long time now, so I wouldn't be surprised if a lot of people expected it to also be an option for ApplePay. The lack of PayPal being an option there makes it feel incomplete and not quite ready yet for "prime time." As such, I feel this will be Apple's loss.
      You can still use PayPal for iTunes payments. There not going to use PayPal in the ApplePay infrastructure though. So you will be able to use Visa, MasterCard, Amex and etc... But no PayPal. That's where PayPal is going to lose. Not being a option to pay with as with other credit cards.
    1. znbl's Avatar
      znbl -
      Quote Originally Posted by Carvensno View Post
      You can still use PayPal for iTunes payments. There not going to use PayPal in the ApplePay infrastructure though.
      Please re-read what I wrote. I know you can use PayPal for iTunes, that's the point I made.

      So you will be able to use Visa, MasterCard, Amex and etc... But no PayPal. That's where PayPal is going to lose. Not being a option to pay with as with other credit cards.
      Again, I think it's Apple's loss, as you have the consider the perception that this may create. Although now that I think about it, technically you should be able to use a PayPal debit (or credit) card number. IT would still be better to be able to use it directly, though, and may very well end up being a glaring omission for many people.
    1. Carvensno's Avatar
      Carvensno -
      Quote Originally Posted by znbl View Post
      Please re-read what I wrote. I know you can use PayPal for iTunes, that's the point I made.

      Again, I think it's Apple's loss, as you have the consider the perception that this may create. Although now that I think about it, technically you should be able to use a PayPal debit (or credit) card number. IT would still be better to be able to use it directly, though, and may very well end up being a glaring omission for many people.
      True you should be able to use the PayPal Visa debit card. I don't see why not? Does have the Visa logo on it! Didn't think of that one! Good call!
    1. Dranon's Avatar
      Dranon -
      Quote Originally Posted by csglinux View Post
      Ok, I'm going to play Devil's advocate here, because I hate PayPal for a couple of reasons: 1. If something goes wrong with your transaction, you're screwed. PayPal claim they offer buyer protection, but they don't. 2. If you try to pay with your credit card through PayPal (because most credit card companies actually will refund you if you buy a product that's defective or never arrives, even if you use your credit card through PayPal), PayPal makes it as awkward as possible for you to switch payment methods. It used to be even worse. Remember the messages saying "Are you sure you'd like to pay with a credit card?" and "No, are you really sure?" and "Here are all the benefits of paying with a transfer from your bank account and not using your credit card: blah, blah, blah". Then when you still insisted you wanted to pay via credit card, you'd get a set of radio buttons which would alternate between:

      "Yes, I want to use my credit card"
      "No, I want to pay using my bank account"

      and

      "Yes, I want to still use my bank account"
      "No, I'd like to pay via credit card"

      i.e., they'd deliberately switch around the button that you needed to click to finally be able to use your credit card.
      To this day, there's no way of making your credit card the default payment method in PayPal.
      Sleazy ******bag company. I hope they crash and burn. Go Apple Pay!
      Although I somewhat agree with you, there are fees associated with using a credit card which I assume is what paypal was trying to avoid by using a bank account instead of the credit card. Reasonable for a company to TRY to get you to use their method BUT still making available a method you prefer. I always suggest PAYING ATTENTION to what you are doing rather than just clicking buttons on the internet that is how most people get viruses on their computers!
      As for buyers protection, I have needed to use it three times and they fixed each time and I got my money back! It was not a hassle, they just needed ME to prove what happened. One time they made me file a police report. Little bit of a pita BUT reasonable since a crime WAS committed.
    1. csglinux's Avatar
      csglinux -
      Quote Originally Posted by Dranon View Post
      Although I somewhat agree with you, there are fees associated with using a credit card which I assume is what paypal was trying to avoid by using a bank account instead of the credit card. Reasonable for a company to TRY to get you to use their method BUT still making available a method you prefer. I always suggest PAYING ATTENTION to what you are doing rather than just clicking buttons on the internet that is how most people get viruses on their computers!
      As for buyers protection, I have needed to use it three times and they fixed each time and I got my money back! It was not a hassle, they just needed ME to prove what happened. One time they made me file a police report. Little bit of a pita BUT reasonable since a crime WAS committed.
      Thanks so much for the advice. Not only have I spent years unnecessarily paying through PayPal with a direct bank transfer because I wasn't PAYING ATTENTION to what I was clicking on, but just this morning I sent several thousand dollars to the ex-president of the Nigerian bank who sent me an email saying he would transfer millions of dollars into my bank account. Now I'm worried that I might have been scammed and I wish I'd read your advice sooner about PAYING ATTENTION online.

      Satire aside for a moment, I think we can pretty safely assume that PayPal are wanting to avoid having to pay credit card fees. I get that. What I don't appreciate is the sleazy, disingenuous way in which they go about trying to persuade their customers not to use a method (credit card) that would clearly be in their own best interest. You're lucky you only had to jump through a few hoops to get your money back from PayPal. In most payment disputes with PayPal, you'll be SOL.
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