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.
Buster Hein is a freelance writer who lives in Phoenix, Arizona. Twitter: @bst3r.
23 responses to “PayPal got kicked out of Apple Pay for partnering with Samsung”
Probably won’t use if PayPal is not there – I use it all the time.
Bye bye paypal!!!
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If ApplePay takes off PayPal guys will probably cry a single tear that will be wiped with a bunch of 100 bills.
Time for the board to kick Donahoe to the curb for this massive screw up!
Given that it is the merchant that picks the card processor, it will be up to Apple to get as much traction as possible while it has the lock on the NFC chip. Starbucks and Google wallet required you to top off a debit card which made it hassle. Cross your fingers.
You said it, THEY USED TO REQUIRE THAT, back around 4 years ago. Now you can use any card you want or any bank account you want. Which makes it very convenient
Only one that isn’t on apple pay pay or is discover
My PayPal goes straight onto my AMEX card anyway. I only use it as it’s easier than using my card details, and for ebay. So I couldn’t really care less if they are not in ApplePay.
It sucks, I use paypal all the time. I love my mac but apple is just acting like a cry baby child nowadays. I hope they somehow make up. If google somehow signed a contract with paypal it would be bigger. I have been using google wallet tap and pay for the last 3 years. I would love to do tap and pay on the iphone 6 but if paypal comes to another tap and pay service then they lost me for sure. But i’m sure apple will do ok. Apple pay is the best thing to happen to ALL tap and pay.
No one will miss PayPal anyway cuz it’s just the same which is middle guy like ApplePay: transfer money from your credit card or bank account thru it for payments. Most people use it for eBay transactions only. Seriously, ApplePay will kick PayPal ass badly.
I can see what you mean about PayPal only being used for eBay but PayPal is used for many other sites. Also it is used on swappa which is huge for selling android phones and iPhones. So if PayPal came up with a tap and pay system I think it could keep up with Apple pay. Example, I receive money for selling my iPhone with swappa, then the money is available instantly on PayPal, I’d use my PayPal over Apple pay. So PayPal has a chance if they plan correctly. In the end more competition is always better.
For many non-profit and small business, PayPal is a great way to take payments over the web. As of now, I don’t know if Apple pay will be a better deal for online purchases. The real danger is for Square. We use Square to accept donations in person. If people stop carrying their cards and expect to pay by phone….
Guess I’ll be deleting my paypal account :)
Probably about 1-2 years from now
Omg, i love to pay via Paypal, seriously
Im Pinot inclined to believe the tale of some basically unknown site that could be looking for page hits
Fine with me, I hate PayPal
Easy fix. Just simply get a PayPal debit card, and then link that debit card to your Apple Pay! That’s what I did for Google Wallet….
Apple Maps vs Google Maps, Apple Pay vs Samsung/Paypal, Itunes vs Spotify…what ain’t all good for the customer.. is better for Apple.
As far as Apple Pay goes, they are laughing all the way to the bank. It is too easy for them to leverage existing customers locked into their ecosystem to conquer other markets, reminds one of the Microsoft monopolistic power in the 90s.
Does it really matter? paypal is convenient for many things, but there are so many pay options now as it is. Undoubtedly every merchant will have an option that links to your bank account to get the money you want to spend. I would only feel left out in the dark if they said you can only use a Discover Card.
Wtf. First they get rid of Google Maps, now paypal. Damn Apple, you’re a good company that makes horrible decisions