Shares of PayPal slide amidst rumors of browser-based Apple Pay checkout

AppleInsiderAppleInsider
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in General Discussion
PayPal stock dipped on Thursday, as investors reacted to a new rumor claiming Apple Pay may soon further encroach on its business with upcoming website integration.




Shares of PayPal were down nearly 9 percent in early morning trading, but recovered some as the day went on. Investors appear to be concerned that PayPal could suffer if Apple Pay expands to support purchases on the Web.

Wednesday evening, a new report claimed that Apple has reached out to potential e-commerce partners to indicate that Apple Pay will soon support purchases on websites. It's believed that the new functionality will come to storefronts before the end of 2016.

Apple Pay for Web purchases is expected to be limited to transactions conducted through Safari on iOS devices that feature Touch ID and Apple Pay support. Currently, Apple Pay is available for contactless payments on newer iPhones, as well as in-app purchase authorizations on both recent iPhones and iPads.

When Apple Pay was announced in 2014, PayPal was a notably missing partner from the service. Earlier reports had suggested that PayPal was in talks with Apple, but a report apparently fell apart after PayPal agreed to team up with Samsung.

Apple ultimately chose to bring payments startup Stripe into the fold, seemingly filling the seat at the table left vacant by PayPal. PayPal then responded last year by buying Paydiant, a mobile wallet developer with clients including retailer-driven CurrentC.
sockrolid
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Comments

  • Reply 1 of 25
    cash907censoredcash907censored Posts: 83member
    This. So much this. If I could transfer money to my friends and family as well as accept payment for goods and services via Apple Pay, I'd ditch Paypal and Square in a heartbeat. 
    sockrolidcornchip
  • Reply 2 of 25
    ericthehalfbeeericthehalfbee Posts: 4,486member
    Wow, a rumor about Apple that doesn't cause Apple stock to drop.

    PayPal is garbage. Wouldn't bother me one bit to see them suffer.
    SpamSandwichpotatoleeksoupsockrolidcornchipTheDon
  • Reply 3 of 25
    hungeduhungedu Posts: 15member
    Ha! Couldn't happen to a better company. PayPal sucks!
    leviSpamSandwichsockrolidTheDon
  • Reply 4 of 25
    evilutionevilution Posts: 1,399member
    I don't see your problem with PayPal. You are obviously too young to remember having to send a check when buying on eBay.
    It's the forefather of online payments and has held up well.
    mwhitecash907censoredanantksundaramicoco3cornchipstevenozcnocbui
  • Reply 5 of 25
    sflocalsflocal Posts: 6,093member
    evilution said:
    I don't see your problem with PayPal. You are obviously too young to remember having to send a check when buying on eBay.
    It's the forefather of online payments and has held up well.
    I agree... I'm still kind of new to using PayPal, and am a really light user of it.  It's only recently that I've started accepting payments from clients using it.  It's been fine for me and really convenient.  I remember vividly the check-writing era and am more than happy we've moved on from that.

    That being said, if Apple provides a full-circle solution of making/accepting payments via ApplePay, that's even less I'll use PayPal for.  
    anantksundaramcornchipstevenoz
  • Reply 6 of 25
    levilevi Posts: 344member
    evilution said:
    I don't see your problem with PayPal. You are obviously too young to remember having to send a check when buying on eBay.
    It's the forefather of online payments and has held up well.
    PayPal is convenient, but with flaws, especially in regards to security. Twice I've had my account hacked and didn't recieve any meaningful support or resolution from PayPal. On one occasion I informed them of a fraudulent transaction, though only my bank did anything about it. After the bank cancelled the transaction, PayPal defaulted to charging my secondary payment account, even after informing them of the erronous charges. I've since added several security layers. My gut and experience tell me Apple will do a more thorough job.
    cornchip
  • Reply 7 of 25
    bcodebcode Posts: 141member
    evilution said:
    I don't see your problem with PayPal. You are obviously too young to remember having to send a check when buying on eBay.
    It's the forefather of online payments and has held up well.
    Apparently you've never had a business that relies on Paypal, or you'd know how amazingly horrible and evil they truly are. They freeze funds and lockout legitimate companies from their accounts on an almost daily basis... A cursory google search will turn up hundreds of thousands, if not millions of "horror stories". Personally, I haven't used them in a couple of years, simply on principal.
    TheDon
  • Reply 8 of 25
    SpamSandwichSpamSandwich Posts: 33,407member
    You're done, PayPal. Finished! Next!
    sockrolidTheDon
  • Reply 9 of 25
    rob53rob53 Posts: 3,250member
    bcode said:
    evilution said:
    I don't see your problem with PayPal. You are obviously too young to remember having to send a check when buying on eBay.
    It's the forefather of online payments and has held up well.
    Apparently you've never had a business that relies on Paypal, or you'd know how amazingly horrible and evil they truly are. They freeze funds and lockout legitimate companies from their accounts on an almost daily basis... A cursory google search will turn up hundreds of thousands, if not millions of "horror stories". Personally, I haven't used them in a couple of years, simply on principal.
    Your comments make me wonder why Home Depot went with PayPal over turning ApplePay back on. Home Depot's system got hacked and they didn't learn. 
    cornchip
  • Reply 10 of 25
    radarthekatradarthekat Posts: 3,842moderator
    First phase of a company getting snow-plowed off the road by Apple; reaction mode.  PayPal is definitely in reaction mode these days, whereas Apple is doing its usual thing; pushing forward into new areas with a solid, well-thought-out plan.
    sockrolidcornchipTheDon
  • Reply 11 of 25
    sockrolidsockrolid Posts: 2,789member
    Closed both my personal and business PayPal accounts the day PayPal announced their new "privacy" policy.
    Hadn't used either account in years anyway.
    Good.
    Riddance.
    edited March 2016 cornchip
  • Reply 12 of 25
    volcanvolcan Posts: 1,799member
    bcode said:

    They freeze funds and lockout legitimate companies from their accounts on an almost daily basis... 
    I heard about this, but in the cases I have read, it always seemed to be people who were selling crap products where customers were dissatisfied and trying to return them complaining to PayPal. People who use PayPal as their go to payment system for their business are usually not playing by the rules anyway, probably don't have a business license, insurance, a return policy, don't charge sales tax, and they are usually selling cheap products at a very low margin so they can't afford to provide any customer support. After a certain number of complaints is when PayPal shuts them out. They freeze the funds because they don't know how many more refunds they are going to have to pay to dissatisfied shoppers.

    If you are going to be in business, do it right.  Form an LLC, get a merchant account, a reseller sales tax ID, a domain name, an SSL certificate, and set up a server. And don't sell crap.
    edited March 2016 anantksundaramcornchipsingularity
  • Reply 13 of 25
    dachardachar Posts: 330member
    I have had problems with PayPal and lost money. PayPal let unauthorised payments and showed little interest in resolving. Apple will no doubt have a much security and protection.
  • Reply 14 of 25
    karmadavekarmadave Posts: 369member
    PayPal is ubiquitous on pretty much all devices, so I really don't see ApplePay killing it off. Also, PayPal did pretty much spur the era of online payments. Say what you will about the eBay owning PayPal, but I think the company has a pretty strong brand and will probably be around for a long time.
  • Reply 15 of 25
    anantksundaramanantksundaram Posts: 20,404member
    Wow, a rumor about Apple that doesn't cause Apple stock to drop.

    PayPal is garbage. Wouldn't bother me one bit to see them suffer.
    I don't think it's garbage at all. A somewhat annoying interface, yes, but I have used it time and again, especially for international transactions and domestically with companies that I don't know or trust. It even has TouchID now. You can also transfer cash to PayPal account holders who have a bank account, for free. My hope is that Apple can come up with a simpler, cleaner implementation of all that PayPal offers. Let's see. 

    Perhaps you do all of your online shopping with well-known, well-established domestic US websites?
    fotoformat
  • Reply 16 of 25
    anantksundaramanantksundaram Posts: 20,404member

    hungedu said:
    Ha! Couldn't happen to a better company. PayPal sucks!
    Why? Care to elaborate?
  • Reply 17 of 25
    anantksundaramanantksundaram Posts: 20,404member
    sockrolid said:
    Closed both my personal and business PayPal accounts the day PayPal announced their new "privacy" policy.
    Hadn't used either account in years anyway.
    Good.
    Riddance.
    What is their new privacy policy that has you worried? (Serious question, as a PayPal customer.)
    cornchip
  • Reply 18 of 25
    MarvinMarvin Posts: 15,320moderator
    You're done, PayPal. Finished! Next!
    It's important to keep in mind there are different parts to the payment system: the acquiring, processing and merchant services. Paypal is a company that does all of those so they handle liabilities. That's why they have such a poor history of dealing with companies because they take companies on that have no business history, unlike bigger merchant service providers. This is good for small businesses but in order to avoid huge liabilities, they can put assets in reserve whenever they want and low margin retailers don't have enough operating capital so their business grinds to a halt when they do that.

    http://ecommerce-platforms.com/ecommerce-selling-advice/what-is-difference-between-a-payment-gateway-payment-processor-and-a-merchant-account

    Apple probably won't become a merchant services provider because that comes with a lot of risk. They seem to be setting up Pay to be a secure, anonymous payment gateway. They are taking on the task of getting the payment securely and quickly from the customer to the payment processor, which then ends up with the merchant services provider (bank or Paypal). Paypal takes a fee from the merchant services so they could actually work with Pay. There would be losses for Paypal from Pay facilitating payments to competing merchant service providers though.
  • Reply 19 of 25
    mchumm3rmchumm3r Posts: 17member
    karmadave said:
    PayPal is ubiquitous on pretty much all devices, so I really don't see ApplePay killing it off. Also, PayPal did pretty much spur the era of online payments. Say what you will about the eBay owning PayPal, but I think the company has a pretty strong brand and will probably be around for a long time.
    Ebay and PayPal completed their split the end of 2015. Ebay said they would now concentrate on their own business. Could Ebay be up for partnering with ApplePay for payments?
  • Reply 20 of 25
    matrix077matrix077 Posts: 868member
    karmadave said:
    PayPal is ubiquitous on pretty much all devices, so I really don't see ApplePay killing it off. 
    Agree. Apple Pay still need Apple hardware authorisation so I don't see they expand to Android anytime soon.
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