Apple Pay's success has rivals scrambling to catch up, could make PayPal an acquisition target

Posted:
in iPhone edited February 2015
The strong initial success of Apple Pay, combined with the news that eBay will spin off PayPal, has led to expectations that PayPal could be a major acquisition target for mobile companies vying for users' wallets.



Apple Pay's launch has sent competitors such as Google and Samsung scrambling to respond, through acquisitions or otherwise, according to the Financial Times. As a result, bankers believe that PayPal, which eBay announced this week that it will spin off, could be a potential target for purchase.

eBay will separate from PayPal sometime later this year, which could make the payments service with 150 million users an attractive acquisition target.

Earlier this month, it was revealed that Google has apparently been in talks to acquire Apple Pay competitor Softcard. That company is a joint venture backed by U.S. carriers Verizon, AT&T, and T-Mobile, and it offers support for payments through American Express, Chase, Wells Fargo, and other large financial institutions.

Google is looking to get back in the game after its Google Wallet service fell flat with consumers, and has since been trounced by Apple Pay. Facebook is also said to be on the market for potential mobile payment acquisitions, while Samsung was rumored last month to be in talks with startup company LoopPay, in hopes of debuting its own mobile payments service with wide compatibility this year.

Bankers also indicated to the Times that there are a number of smaller companies that are prime to be acquired, namely Dwolla and Paydiant.

In its quarterly earnings conference call this week, Apple touted the success of Apple Pay. Chief Executive Tim Cook went as far as to call 2015 "the year of Apple Pay," saying that he expects even more growth for the new service as 2015 progressive.

Initially, 500 banks and financial institutions pledged support for the service, but that number has swelled up to around 750, with even more requesting to partner up. Cook said Apple Pay now represents 80 percent of contactless transactions at Panera Bread, while upscale grocer Whole Foods saw a 400 percent increase in contactless payments since the service launched.
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Comments

  • Reply 1 of 147
    tundraboytundraboy Posts: 1,565member
    I hope whoever acquires Dwolla doesn't ruin it.
  • Reply 2 of 147
    lkrupplkrupp Posts: 5,804member
    Quote:
    Originally Posted by tundraboy View Post



    I hope whoever acquires Dwolla doesn't ruin it.

     

    Be gone! Spammer

  • Reply 3 of 147
    calicali Posts: 3,495member
    I wish Apple was as aggressive with CarPlay as they were ?Pay.....
  • Reply 4 of 147
    Please for the love of god no!
  • Reply 5 of 147
    cnocbuicnocbui Posts: 3,613member

    How are Apple Pay and Paypal competitors?  One is geared towards online transactions via websites like eBay while the other is chiefly for making contactless in-person payments where there is a capacity to do so.

  • Reply 6 of 147
    Quote:

    Originally Posted by cnocbui View Post

     

    How are Apple Pay and Paypal competitors?  One is geared towards online transactions via websites like eBay while the other is chiefly for making contactless in-person payments where there is a capacity to do so.




    I don't get that, either.

     

    I'd also love to be able to use my MasterCard Paypal Debit card with ?Pay.

  • Reply 7 of 147
    solipsismysolipsismy Posts: 5,099member
    danielsw wrote: »
    I'd also love to be able to use my MasterCard Paypal Debit card with ?Pay.

    That's up to PayPal and the bank they partner with on the back end,
  • Reply 8 of 147
    Quote:

    Originally Posted by cali View Post



    I wish Apple was as aggressive with CarPlay as they were ?Pay.....



    How do you know they're not? Two totally different "ball games."

     

    I'd say ?Pay is most likely more priority at this stage, though. It's far more strategic, and ?Pay has to go in with a bang so as to beat our potential competition.

     

    Auto makers can "switch" with relative ease with a new model year. Isn't Ford switching from MS's system to CarPlay?

  • Reply 9 of 147
    This is all good but where's my apple TV. Forget apple pay forget apple watch. I want an apple TV that equipped for playstation level gaming.

    They get something out like that for say $149, that's going to be the hit product for Apple in 2015. You heard it here first. The apple TV is the sleeper product of 2015 from Apple

    Oh and screw CVS. Apple Pay is disabled there
  • Reply 10 of 147
    Quote:

    Originally Posted by jsmythe00 View Post



    This is all good but where's my apple TV. Forget apple pay forget apple watch. I want an apple TV that equipped for playstation level gaming.



    They get something out like that for say $149, that's going to be the hit product for Apple in 2015. You heard it here first. The apple TV is the sleeper product of 2015 from Apple

    There's no way that Apple ever sells a "playstation level gaming" console for $149. Just no.

  • Reply 11 of 147
    cnocbui wrote: »
    How are Apple Pay and Paypal competitors?  One is geared towards online transactions via websites like eBay while the other is chiefly for making contactless in-person payments where there is a capacity to do so.
  • Reply 12 of 147
    cnocbui wrote: »
    How are Apple Pay and Paypal competitors?  One is geared towards online transactions via websites like eBay while the other is chiefly for making contactless in-person payments where there is a capacity to do so.
    Maybe PayPal is planning to launch a contact less method because some stores offer PayPal on their credit card machine as an option! I don't think it will see the success Apple pay is though
  • Reply 13 of 147
    asdasdasdasd Posts: 4,950member
    Quote:

    Originally Posted by LilSmirk View Post

     

    There's no way that Apple ever sells a "playstation level gaming" console for $149. Just no.




    $151?

  • Reply 14 of 147
    wizard69wizard69 Posts: 12,354member
    lkrupp wrote: »
    Be gone! Spammer

    How was that spam?
  • Reply 15 of 147
    gigigigi Posts: 65member
    cnocbui wrote: »
    How are Apple Pay and Paypal competitors?  One is geared towards online transactions via websites like eBay while the other is chiefly for making contactless in-person payments where there is a capacity to do so.

    Apple pay is also for online transaction through app on the AppStore . You can buy clothes or anything else inside app that support it.
  • Reply 16 of 147
    wizard69wizard69 Posts: 12,354member
    cnocbui wrote: »
    How are Apple Pay and Paypal competitors?  One is geared towards online transactions via websites like eBay while the other is chiefly for making contactless in-person payments where there is a capacity to do so.

    There is nothing stopping the usage of Apple Pay on web sites. Like wise PayPal can be extended for in person payments.
  • Reply 17 of 147
    wizard69wizard69 Posts: 12,354member
    lilsmirk wrote: »
    There's no way that Apple ever sells a "playstation level gaming" console for $149. Just no.

    It is all a matter of desire and fast broadband. Slip an A8X into an Apple TV and you will be close to some of the older gaming systems, go A9X with DDR4 RAM and you could easily get the same performance levels as today's gaming systems. You wouldn't be able to support mass storage and would likely have to buffer games like Apple TV does movies. However $150 is very doable for similar performance.
  • Reply 18 of 147
    mjtomlinmjtomlin Posts: 1,696member

    I seriously don't think people understand what ?Pay actually is?

     

    It's just a brand on top of a new industry transaction standard being rolled out. This would've happened with or without Apple behind it. However, the reason it's getting a lot of attention and being adopted so quickly is because of Apple's branding power. Everyone is trying to jump on the bandwagon as soon as possible to get access to Apple's highly influential user base.

     

    These articles make it sound as if ?Pay is it a disparate service in competition with other services - it's really not - albeit, it is indirectly in competition with those services that are trying to bypass the credit card companies, but that's not Apple's fight. The traditional financial institutions are merely making use of Apple's brand to "keep" their customers within the fold.

     

    We all still have credit/debit cards and probably always will. What Apple has done with ?Pay is make payments intuitive, quick, private, and secure. This is something that Apple does best - take an existing market and enhance it to the benefit of their customers and spread desire and envy into the rest of the market, which then shortly follows along.

  • Reply 19 of 147
    sflocalsflocal Posts: 4,013member
    All these years Google had to get its GoogleWallet going, and the Fandroids with their "Gazillion activations per day" nonsense, and they have zero to show for it.

    That is pathetic to say the least. Says a lot about Google and the user-base.
  • Reply 20 of 147
    Apple really needs to get Apple Pay international to be a serious player.... Anyone buying Paypal will have instant international exposure...
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