“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.
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