“When Apple Inc. decided to develop a payments system so people could use iPhones to buy items at a store instead of swiping debit or credit cards, the company bypassed EBay Inc.’s PayPal,” Adam Satariano reports for Bloomberg. “Apple instead chose startup Stripe Inc. to help with the development of its service. The Cupertino, California-based company then bolstered its move with a barrage of partnerships, including with banking giant Citigroup Inc. and heavyweights such as American Express Co. and First Data Corp.”
“The decisions underscored the new pressures facing PayPal, a Web-payments pioneer that EBay purchased in 2002 to smooth transactions on its marketplace,” Satariano reports. “Apple Pay will barrel into the fast-growing U.S. mobile-payments market this month.”
“Right out of the gate, Apple Pay is ready for consumers to make transactions with their mobile devices at different merchants. That mobile-ready aspect is an area where PayPal, which has roots as a facilitator of payments through websites, hasn’t been as dominant,” Satariano reports. “Apart from credit-card companies and large U.S. banks, Apple’s partners on Pay also include merchants such as McDonald’s Corp., Whole Foods Market Inc. and Walgreen Co. ‘They set out to do something from day one with substantial scale,’ James Anderson, senior vice president at MasterCard Inc., said last month when Apple announced the new system.”
Read more in the full article here.
MacDailyNews Take: Apple Pay caused eBay’s PayPal spinoff.
eBay’s brilliant CEO John Donahoe should just rename the thing “DeadMeat” and be done with it.
Related article:
How PayPal blew their chance to be an Apple Pay preferred partner – September 30, 2014
As Apple Pay rolls out, eBay plans to spin off PayPal business – September 30, 2014
The rush is on worldwide to support Apple’s revolutionary Apple Pay – September 19, 2014
Apple Pay set to radically change commerce – September 18, 2014
Banks race to gain Apple Pay advantage – September 16, 2014
Apple Pay triggers pure panic at PayPal, begets ‘dumbest ad campaign ever’ – September 16, 2014
Frightened PayPal slams Apple Pay in full-page newspaper ads – September 15, 2014
Wells Fargo brings revolutionary Apple Pay to customers and merchants – September 15, 2014
Apple gets 15 cents of every $100 Apple Pay purchase – September 12, 2014
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The hidden brilliance behind the timing of Apple’s adoption of NFC – September 12, 2014
MasterCard SVP: Apple Pay trumps traditional credit and debit cards in security – September 11, 2014
Authorize.Net announces support for Apple Pay – September 11, 2014
Apple Pay’s myriad advantages over the $300 million Google Wallet flop – September 11, 2014
Apple Pay may boost sales of larger iPhones, hurt Android phone sales – September 11, 2014
Why Apple Pay will hurt PayPal – September 10, 2014
Apple Pay will demolish the barrier between online and offline shopping – September 10, 2014
Disney CFO: Apple Pay is a huge advantage – September 10, 2014
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Apple announces Apple Pay mobile payments – September 9, 2014
does anyone know if ApplePay has an online payment option? I’m looking forward to ditching PayPal but if ApplePay is specifically “in person” it won’t be an option. I’ve been looking around but can’t find any information about it.
They mentioned Mobile through apps but have not offered specifics on browser payments yet.
“Online shopping in apps with iPhone is also as simple as the touch of a finger. Users can pay for physical goods and services including apparel, electronics, health and beauty products, tickets and more with Touch ID. Checkout can happen with a single touch, so there’s no need to manually fill out lengthy account forms or repeatedly type in shipping and billing information, and card details are kept private and are not shared with the online merchant. For example, quickly order grill accessories for a backyard BBQ from the Target app, easily request a ride with Uber without having to create an account first or avoid the lunch line by using Rapid Pick-Up and paying ahead in the Panera Bread app. Simply make your selection and when ready to buy, use Apple Pay to complete the transaction.”
http://www.apple.com/pr/library/2014/09/09Apple-Announces-Apple-Pay.html
Yeah I read that but was hoping they were planning to expand a bit. If this the case and ApplePay can only be used in apps available through the App Store or over the counter, I’m not sure why PayPal feel so threatened
It requires Touch ID so it’s a bit difficult to expand it beyond that right now. Besides, most purchases can be made via iOS apps and most certainly over the counter currently anyway.
No one seems to be mentioning iTunes which will of course be involved. When I purchase songs, nothing has to be in-person. The money from my paycheck flows to my bank, to iTunes, and nothing is EVER in person. How many millions of people are already just a click away of paying for songs through iTunes? I think Apple already has the largest number of credit customers on tap, but soon it will be a whole lot more purchases flowing through Apple, not just tunes. Their huge number of people already signed up was probably what got Amex and the others ready to jump in with them. Apple simply cannot be ignored. ePay was the worst kind of dumb on this. Their shareholders need to fire their CEO.
Best article yet on Apple Pay – real deep details
http://seekingalpha.com/article/2532065-apple-pay-a-semi-monopoly-on-the-real-killer-app