PayPal wants to partner with Apple on iPhone mobile payment platform - report
Online payment giant PayPal has reportedly been pitching Apple a potential partnership --?one that could see PayPal handle back-end security measures for a future iPhone-driven mobile payment system.
Details on PayPal's alleged pitch were revealed on Thursday by Re/code, citing unnamed sources who indicated that the company told Apple is it is "willing to white label parts of its payment service," including fraud detection and even potentially the processing of payments. PayPal is apparently willing to handle the background work for Apple because it has a strong desire to be a part of any mobile payment services the iPhone maker may offer.
While PayPal is apparently pushing hard at Apple, sources reportedly said it's "unlikely" that the Cupertino, Calif., company would need PayPal's services. However, that doesn't mean that a partnership is impossible.
Sources reportedly indicated that Apple is "finally committed" to a mobile payment platform, within which the iPhone would be the central device. Reporter Jason Del Ray suggested it could be a "scary proposition" for PayPal if it were unable to forge a partnership with Apple.
This week, Apple Chief Executive Tim Cook himself hinted that his company could offer a mobile payment system in the future driven by the secure Touch ID fingerprint sensor found on the company's flagship iPhone 5s. Cook went as far as to say that Apple is "intrigued" by the possibility of mobile payments, and admitted that e-wallet-like functionality was "one of the thoughts behind Touch ID."
For now, Touch ID is only used to unlock the iPhone 5s and to authorize iTunes Store purchases. The fingerprint sensor embedded in the home button relies on a "secure enclave" verification system embedded in the A7 processor.
Earlier this month, AppleInsider was first to reveal a new patent filing from Apple that detailed a touchless secure e-wallet system. The proposed invention describes a purchasing device, such as an iPhone, that would authorize transactions via two secure wireless interfaces.
Details on PayPal's alleged pitch were revealed on Thursday by Re/code, citing unnamed sources who indicated that the company told Apple is it is "willing to white label parts of its payment service," including fraud detection and even potentially the processing of payments. PayPal is apparently willing to handle the background work for Apple because it has a strong desire to be a part of any mobile payment services the iPhone maker may offer.
While PayPal is apparently pushing hard at Apple, sources reportedly said it's "unlikely" that the Cupertino, Calif., company would need PayPal's services. However, that doesn't mean that a partnership is impossible.
Sources reportedly indicated that Apple is "finally committed" to a mobile payment platform, within which the iPhone would be the central device. Reporter Jason Del Ray suggested it could be a "scary proposition" for PayPal if it were unable to forge a partnership with Apple.
This week, Apple Chief Executive Tim Cook himself hinted that his company could offer a mobile payment system in the future driven by the secure Touch ID fingerprint sensor found on the company's flagship iPhone 5s. Cook went as far as to say that Apple is "intrigued" by the possibility of mobile payments, and admitted that e-wallet-like functionality was "one of the thoughts behind Touch ID."
For now, Touch ID is only used to unlock the iPhone 5s and to authorize iTunes Store purchases. The fingerprint sensor embedded in the home button relies on a "secure enclave" verification system embedded in the A7 processor.
Earlier this month, AppleInsider was first to reveal a new patent filing from Apple that detailed a touchless secure e-wallet system. The proposed invention describes a purchasing device, such as an iPhone, that would authorize transactions via two secure wireless interfaces.
Comments
I think this would be at least a good option for Apple. It may have to be the only option, but how many people here already have paypal accounts and use them. I know I do. Sure, I don't use it everyday, or even every week but its still a decent service for what it does.
Apple could still create its own service and let the customer choose what they want to use for payment options.
Worried, Paypal?
Hasn't PayPal been in the news in the last few years about being hacked or the ability to easily hack it? If Apple can provide a single source mobile payment system, why bring in a secondary product that could be hacked? Yes, iTunes accounts could be hacked but I'm reading much more positive articles about Apple's security than others. I've also read stories about PayPal holding onto your money instead of just processing your order.
Hey. Wasn’t eBay going to sell PayPal, or was that someone’s wish?
Forget partnering. Apple has a history of partners STEALING THEIR INTELLECTUAL PROPERTY. Either buy PayPal or go it alone.
If you get paypal involved no one will see it as an apple innovation, they'll see it as a paypal innovation, and paypal will eventually want to make more money by including android users
At least we can see Carl Icahn's plan much clearer now.
I think this would be at least a good option for Apple. It may have to be the only option, but how many people here already have paypal accounts and use them. I know I do. Sure, I don't use it everyday, or even every week but its still a decent service for what it does.
Apple could still create its own service and let the customer choose what they want to use for payment options.
For several years, Apple allowed members to log in to iTunes with their AOL IDs and Passwords.
On a different topic, look for Google to become the world's most valuable company today or tomorrow. There is currently a $70 billion difference between the companies. All Wall Street has to do is drop Apple's stock while pushing up Google's stock. And, with Google's earnings on tap later today, there is a really good chance Google's stock will increase no matter what Google announces.
I believe iTunes has more users than paypal...? Why would Apple share profits with someone else when they can do it all themselves?
If you get paypal involved no one will see it as an apple innovation, they'll see it as a paypal innovation, and paypal will eventually want to make more money by including android users
I'm not sure this will be viewed innovative for Apple anyways. They may get the ball rolling with this, but I'm not so sure it will be the largest thing coming from Apple this year. A major hardware announcement with something thats "insanely great" is something Apple will known for as innovative.
They already partner with PayPal for their app stores anyways, so its not like this will be something new for them.
Maybe but that's because people expect them to cute cancer. If it changes the way we pay forever, it's worth being mentioned as highly innovative. Imagine a few years from now, making all your payments with your phone or iwatch...
Apple has never been the first to do anything, they have just been the ones to perfect it
Maybe but that's because people expect them to cute cancer. If it changes the way we pay forever, it's worth being mentioned as highly innovative. Imagine a few years from now, making all your payments with your phone or iwatch...
Apple has never been the first to do anything, they have just been the ones to perfect it
But the simple fact is that it won't be mentioned as innovative by Apple. People (investors) are looking for something like AppleTV (the real AppleTV), or iWatch for innovative.
For several years, Apple allowed members to log in to iTunes with their AOL IDs and Passwords.
On a different topic, look for Google to become the world's most valuable company today or tomorrow. There is currently a $70 billion difference between the companies. All Wall Street has to do is drop Apple's stock while pushing up Google's stock. And, with Google's earnings on tap later today, there is a really good chance Google's stock will increase no matter what Google announces.
That and $2.95 will buy you a medium coffee at starbucks.
Market Cap means very little...
I think if Paypal were to partner... Apple's reach out is that the paypal account becomes a card in the wallet.
But I strongly believe Apple would rather partner directly with big banks and EMVCO and become a card payment processor directly.
Reason: Apple already has 1/2Billion CCs in their ITMS store... driving that to a Billion or more by partnerships, and then providing a tokenized payment service (Apple provides one time transaction IDs throughout the process for exactly the amount payable only to the 'seller' and exactly for the timestamp on the purchase).
I see Apple going it alone. Again Apple wants to supplant PayPal, and fight the mobile payment battle with the real competition.... Amazon/Kindle.
Hey. Wasn’t eBay going to sell PayPal, or was that someone’s wish?
Forget partnering. Apple has a history of partners STEALING THEIR INTELLECTUAL PROPERTY. Either buy PayPal or go it alone.
I was going to say something stupid just like this to reach my daily trolling quota but you've beaten me to it
If Apple needs to buy something to get this off the ground buy Square not Paypal.
I agree...I forgot all about Square. Square is awesome!
LOL So that's where he got the $500 million
There is no solution out there for paypal and Apple unless they can bypass at least the CC industry. It doesn't matter if Apple has all these accounts; they're attached to CCs and are insecure by for that reason alone. Of the Target victims, how many of them have accounts with Apple that are linked to the hacked CCs?
TouchID will not protect us as long as the financial infrastructure is itself insecure and will remain that way for the foreseeable future.
That and $2.95 will buy you a medium coffee at starbucks.
Market Cap means very little...
I think if Paypal were to partner... Apple's reach out is that the paypal account becomes a card in the wallet.
But I strongly believe Apple would rather partner directly with big banks and EMVCO and become a card payment processor directly.
Reason: Apple already has 1/2Billion CCs in their ITMS store... driving that to a Billion or more by partnerships, and then providing a tokenized payment service (Apple provides one time transaction IDs throughout the process for exactly the amount payable only to the 'seller' and exactly for the timestamp on the purchase).
I see Apple going it alone. Again Apple wants to supplant PayPal, and fight the mobile payment battle with the real competition.... Amazon/Kindle.
The market cap position change would be spotlighted as another Google positive and another Apple negative. Market cap means a great deal. Remember how the press trumpeted Apple supplanting Microsoft as the most valued software company. Of course, Apple began to earn much more money than Microsoft something Google will be unable to do Apple for many years to come if ever.
On topic, I I also believe Apple will go it alone. "White labeling" parts of its payment system to work with Apple only means PayPal would then be able to promote the system to others in a similar manner as Amazon did with other companies. The PayPal solution would not be a unique Apple solution and would make Apple dependent upon PayPal. This dependence is something Apple would be loathe to do. Google's hostage actions showed Apple that it cannot be dependent on another company to provide solutions to its customers.