Apple Launch Soon – PayPal Split from eBay

With the launch of Apple Pay this month and PayPal’s likely split from eBay, a conflict is heading towards mobile payments. Since PayPal has been the mobile payment pioneer in late 1990, Apple Pay has to put in a great deal of efforts in convincing users to do away with their credit cards in favour of digital wallet.

PayPal’s complete break away from eBay is likely to take place late 2015 and this move will enable both the companies to be more competitive as well as focused in their own respective areas. PayPal’s app is made available for Apple, Android and Windows devices and presently only iPhone 6 and iPhone 6 Plus users could take advantage of Apple Pay and probably PayPal could work well with Apple Pay.

The CEO of PayPal parent eBay, John Donahoe, at an investor conference held recently, commented that he wants PayPal to be a presence however consumers would want to pay, indicating his willingness to work with Apple’s forthcoming mobile payments feature.

He stated `that the future of payments would be where people will have multiple ways to pay and would want PayPal to be present in every environment’.

Apple Pay – Potential Competitor for PayPal

He was in discussion about eBay’s plans to split PayPal into a separate business in the second half of 2015 enabling mobile payments businesses as well as online auction house to stress on different priorities.

Carl Icahn, an activist investor who motivated this move is keen in making the two businesses more effective and able to react to the changing dynamics of both the areas and the rapidly changing area is payments where PayPal tends to face Apple Pay, as a potential competitor.

As PayPal is gradually making its presence in mobile payments, Apple on the other hand could make an appearance and shake up the category with Apple Pay turning the iPhone into a mobile wallet with potentials of paying at the cash register.

Apple Pay is expected to go in service very soon. Apple has the advantage of good customer base together with the reputation to draw users on to mobile payment which PayPal as well as the other companies may have struggled to achieve.

Apple Pay Good for Payment Ecosystem

In early September after Apple had shortly unveiled its payment product, PayPal had taken a series of full page print advertisement in many major newspapers criticizing the company for its weaknesses in software security.

The service which is expected in the coming weeks has the technology industry trying to profit from a future where apps can use the option of replacing cash, credit cards and checks. According to Mr Collision, co-founder and president of Stripe, he states that Apple Pay could be good for all in the payment ecosystem since it increased the amount of transaction which is occurring in mobile.

 Apple Pay is expected to be available within a month, people can now pay online or in person using their iPhone’s fingerprint sensor to check out and get an experience of faster and safe mode of payment from its predecessors with several major retail chains and restaurants signing up to accept payment through Apple Pay.

Paypal wants to help Apple's payment service

The eBay subsidiary PayPal wants to support Apple in the implementation of the proposed mobile payment service according to the reports. Paypal is also working on its own payment system for commercial establishments. In the forthcoming extension of Apple's mobile payment services Paypal wants to be one of the party.

This was reported by the managers from the industry. Paypal is allegedly approached the iPhone maker and has shown his willingness to offer his assistance in the implementation of the payment service - eBay's daughter was even willing to provide white label components for Apple's numbering system, write code - " of the fraud detection on the backend infrastructure, possibly even in paying entry". Apple is working on their own mobile payment service on non - digital goods.

However, it remains unclear on what techniques the company is doing and how he is interested in Paypal's offer. In Apple's retail stores it takes more time to pay for certain accessories in iTunes account, the customer scans the bar code for the product with the iPhone.

When shopping in the iTunes Store users of the iPhone 5s in turn can authorize the payment with their fingerprint instead of fumbling to type the password. PayPal offers "Paypal Beacon" which is already a payment solution for retailers to. This uses Bluetooth - the payment will be on location by Paypal App. Apple also uses Bluetooth and increased Smart transmitters.