After it was announced that PayPal would be spun off from eBay, the money transfer website is back in the news again – in regards to its dropped partnership with Apple, and specifically the recently announced Apple Pay.
It was reported by Bank Innovation:
“Apple and PayPal started talking early on in Apple’s development of Apple Pay, as Apple was setting up partnerships with the card issuing banks and card networks. Since PayPal’s a payments industry leader, it would have been shortsighted for Apple to not reach out to PayPal.
But while these talks were going on, PayPal went ahead and partnered with Samsung on the Galaxy S5 fingerprint scanner.
Apple was said to be absolutely furious that PayPal did the deal with Samsung, which led Apple to cut PayPal out of the Apple Pay process entirely.”
Apple Pay will allow iPhone users to use their device to make online payments, and was announced during the launch of the iPhone 6. Mention of PayPal was suspiciously lacking during the event and this report goes some way to explain why.
The report also questions whether the decision to spin PayPal off from eBay was down to a lesser valuation for the brand without Apple Pay support.
Apple Pay support is expected to go live mid-to-late October.