PayPal purportedly cut out of Apple Pay due to partnership with Samsung

Posted:
in iPhone edited October 2014
A report on Tuesday claims PayPal was in the running to be a prominent partner in Apple's rollout of Apple Pay, but talks went south earlier this year after the payments company struck a similar partnership with Samsung.

Touch ID


When Apple unveiled Apple Pay last month's iPhone 6 event, the company highlighted a number of bank and credit card firms working to integrate the technology with existing payment systems. Noticeably absent from the list was PayPal, a prime contender for integration into any new digital wallet system.

Reports from January indicated PayPal was eager to team up with Apple on a mobile payments solution, however. The company was even "willing to white label parts of its payment service" like fraud prevention and processing to get in on Apple's digital wallet system.

Citing people familiar with the matter, Bank Innovation is now reporting that Apple and PayPal were indeed discussing a possible tie-up, but talks were scrapped after PayPal decided to sidle up to Samsung. Specifically, PayPal partnered with the Korean tech giant to handle mobile payments for the Galaxy S5, which uses a fingerprint scanner to access digital wallet functions.

According to sources, Apple was not pleased with PayPal's partner choice, with one person reportedly saying, "Apple kicked them out of the door." Apple ultimately chose to bring payments startup Stripe into the fold, seemingly filling the seat at the table left vacant by PayPal.

The publication claims former PayPal president David Marcus was against the Samsung partnership as it would hinder future operations with Apple, but eBay CEO John Donahoe forced PayPal to accept. The dynamic just got more interesting with news today that PayPal will be spun off from eBay in 2015, possibly opening the door to policy changes and realigned alliances.

Following Apple Pay's unveiling, PayPal ran an ad that questioned how Apple could offer effective payments security in light of the then-current leak of personal celebrity photos stolen from iCloud.

Apple Pay will go active in October at 220,000 retail locations and support from major credit card issuing banks and networks like Visa, MasterCard and American Express. The rollout may happen soon, as the latest iOS 8.1 beta seeded to developers on Monday contained a hidden Apple Pay settings menu, suggesting the company is making final preparations for launch.
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Comments

  • Reply 1 of 175

    That and they’re garbage, likely to lose people’s information in the first place.

  • Reply 2 of 175
    cpsrocpsro Posts: 2,469member

    Everybody has a price. And I'll bet Samsung was willing to pay a small fortune to interfere with Apple's plans. The two low-lifes deserve each other.

  • Reply 3 of 175
    Not a good move Apple! Sure Samsung is a troll but dont hold it against PayPal.
  • Reply 4 of 175

    I have no problem dumping PayPal if it comes to that.

  • Reply 5 of 175
    Not a good move Apple! Sure Samsung is a troll but dont hold it against PayPal.

    If PayPal it's because of their actions, not Apple's.
  • Reply 6 of 175
    sflocalsflocal Posts: 4,651member
    Quote:

    Originally Posted by Bryant NorCal View Post



    Not a good move Apple! Sure Samsung is a troll but dont hold it against PayPal.

    *yawn*



    If Samsung has proved anything, is that they're very good at putting out garbage with lipstick.  If PayPal wants to partner-up with a loser-company like Samsung, be my guest.  I have zero intention of using PayPal once ApplePay is up and running.



    Five bucks that PayPal with dump Samsung the first chance it gets.

  • Reply 7 of 175

    Keeping it simple. iPhone buyers spends more so Apple pay will used very frequently. There always need to be competitors so that the best one pops out strongly!

  • Reply 8 of 175
    Quote:
    Originally Posted by Bryant NorCal View Post



    Not a good move Apple! Sure Samsung is a troll but dont hold it against PayPal.



    It doesn't ultimately matter for Apple or the consumer.



    The only people this effects are app developers.

     

    Integration with third party merchants is only for using Apple Pay for apps. All this means is developers that were going to use PayPal to process their payments in their app now have to choose a different provider.

     

    The list of providers current being:

     

    And being a developer myself, I can guarantee 100% that no developer on this planet likes to integrate with PayPal, their API is fragmented, poorly documented and buggy. This is ultimately good for everybody but PayPal.

  • Reply 9 of 175
    heliahelia Posts: 170member
    Samsung and Paypal relationship ended up as this: You can carry all your cards on your Note 4 (literally!!) :smokey:

    [IMG ALT=""]http://forums.appleinsider.com/content/type/61/id/49940/width/350/height/700[/IMG]
  • Reply 10 of 175
    I have zero intention of using either one of them. Are we realy so lazy as a country that we're physically incapable of reaching into our wallets and pulling out credit/debit cards?
  • Reply 11 of 175

    If PayPal is excluded from Apple Pay because they are on Samsung, Does that mean that Visa and others Credit Card available on Apple Pay won't be available on Samsung ?

  • Reply 12 of 175
    jbdragonjbdragon Posts: 2,134member

    I was looking at Stripe as I have never heard of it before, but it looks pretty simple to integrate into ones software any number of ways.  How the service is over all?  PalPal has had a number of issues over the years.  Can Stripe be any better on that front?  If PayPal wants to go with Samscum, go for it.  Man I sure hope their FingerPrint scanner is a lot better then the last piece of crap they used!!!   I have to say so far, the Touch ID has worked 100% of the time when I stick the right finger on it.  The others just say try again.   With a hardware security that Apple has over the software that Samscum has, gezz I wonder who's better.

  • Reply 13 of 175
    Quote:

    Originally Posted by Lord Amhran View Post



    I have zero intention of using either one of them. Are we realy so lazy as a country that we're physically incapable of reaching into our wallets and pulling out credit/debit cards?

     

    That's a pretty silly thing to say. Are we really so lazy as a country that we're physically incapable of carrying around cash to pay for things? Or riding a horse to the store?

  • Reply 14 of 175
    I have zero intention of using either one of them. Are we realy so lazy as a country that we're physically incapable of reaching into our wallets and pulling out credit/debit cards?

    Don't be ridiculous! ?Pay has nothing to do with laziness. :no:


    If PayPal is excluded from Apple Pay because they are on Samsung, Does that mean that Visa and others Credit Card available on Apple Pay won't be available on Samsung ?

    Of course not.
  • Reply 15 of 175
    muppetrymuppetry Posts: 3,328member
    I have zero intention of using either one of them. Are we realy so lazy as a country that we're physically incapable of reaching into our wallets and pulling out credit/debit cards?

    That certainly could be one reason to use such a system, but a far more significant benefit is added security.
  • Reply 16 of 175
    No need for Appel pay to have Paypal if you have the big credit card co.s on board. Paypal is much more vital for low income Samsung customers not in possiession of premium credit cards.
  • Reply 17 of 175
    I have zero intention of using either one of them. Are we realy so lazy as a country that we're physically incapable of reaching into our wallets and pulling out credit/debit cards?

    It's not about being lazy. It's about keeping your credit card information away from potential scamming. That's my number one reason I will be using Apple pay
  • Reply 18 of 175
    I have zero intention of using either one of them. Are we realy so lazy as a country that we're physically incapable of reaching into our wallets and pulling out credit/debit cards?

    And proofreading our two-sentence posts?
  • Reply 19 of 175
    Quote:
    Originally Posted by Lord Amhran View Post



    I have zero intention of using either one of them. Are we realy so lazy as a country that we're physically incapable of reaching into our wallets and pulling out credit/debit cards?

     

    Personally, I like the idea of only having to carry my phone... with absolutely no use for a wallet.

     

    I may be dead and buried before everything is on the phone but I really believe that is the future.

     

    The wallet is so old fashioned.

     

    (by the way... my wallet is bent from carrying it in my back pocket)

  • Reply 20 of 175
    nofeernofeer Posts: 2,422member
    PayPal will die a slow death
    Didn't ebay announce today spin off of PayPal
    Hmmmm wonder why
    That's why eBay stock went up
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