PayPal got kicked out of Apple Pay for partnering with Samsung

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Apple Pay’s launch in the U.S. next month is being supported by some of the biggest players in the payments industry in the country except PayPal, but according to a report from Banking Innovation, Apple actually wanted PayPal to be the “preferred payment process” for Apple Pay.

Talks between PayPal and Apple began at the early stages of Apple Pay’s development, but after PayPal decided to partner with Samsung on the Galaxy S5, Apple execs got so mad they nuked the talks altogether.

“Sources close to Apple and PayPal and in the financial services industry have confirmed that PayPal and Apple were indeed in talks for PayPal to be a “preferred payment process” for Apple Pay. However, PayPal pissed Apple off so much that Apple excluded PayPal from Apple Pay altogether.”

eBay announced this week that it plans to jettison PayPal off into its own publicly traded company next year, but its value certainly would have been significantly greater if it hadn’t managed to fumble the Apple Pay deal.

According to the report, eBay CEO John Donahoe forced PayPal president David Marcus to partner with Samsung to make payments through the Galaxy S5 fingerprint scanner. Marcus didn’t want to team up with Samsung fearing the wrath of Apple, but Donahoe obviously won the fight, which is one of the big reasons Marcus left for Facebook in June.

Apple Pay is expected to launch in the US next month, allowing iPhone 6, 6 Plus and Apple Watch owners to pay for physical goods over the counter with just a tap of the finger. All made possible with Stripe’s payments processing powers, instead of PayPal.