PayPal signs up for Apple Tap To Pay, Passkeys & Wallet
PayPal has reached a deal under which Apple’s Tap to Pay system will support both payment services, company CEO Dan Schulman said speaking at the company’s November financial call. PayPal also revealed a $6.85b third quarter, continues to cut costs and warned of dampening consumer sales.
So, what’s the arrangement with Apple?
“Leveraging Apple’s tap-to-pay on iPhone functionality, merchant customers in the U.S. will soon be able to accept contactless debit or credit cards and mobile wallets, including Apple Pay, using an iPhone and the PayPal or Venmo iOS app,” Schulman said.
Only available in the US, Tap to Pay on iPhone will let millions of merchants use their iPhone to accept Apple Pay, contactless credit and debit cards, and other digital wallets through a simple tap to their iPhone.
The new integration means iPhones will let merchants take payments from PayPal or Venmo contactlessly while consumers will be able to add both services to their Wallet app for use anywhere they are accepted.
Good for merchants, customers.. and PayPal
That’s good for PayPal/Venmo as it should make the payment services act far more like any other payment service.
“This will allow PayPal’s merchant base to easily use their iPhone as a mobile point of sale without the need for a dongle or other payment terminals,” Schulman told analysts. “We believe that this, along with our other in-store initiatives, will continue to accelerate our opportunity to seamlessly process payments in the physical world for our merchants.
“We are also adding Apple Pay as a payment option in our unbranded checkout flows on our merchant platforms, including our PayPal commerce platform.”
Square confirms it will work with Apple’s Tap to Pay system
PassKeys are coming too
PayPal also promised it would be among the first payments platforms to support Passkeys, which is a password free authroization planned by Apple, Google, Microsoft and others. This part of the company plan should help make online shopping way faster while also making purchasing products much more secure.
“This is a significant step forward in our relationship with Apple and we are excited to work closely with them to bring these new capabilities to our mutual customers,” he said.
[Also read: How Apple Pay makes money (Merchant Transaction Fees)]
PayPal joins Square and other payment services (including Stripe) in supporting the new merchant payment system.
Apple Pay dominates its industry
On the introduction of Apple Pay, Jennifer Bailey, Apple’s vice president of Apple Pay and Apple Wallet said:
“As more and more consumers are tapping to pay with digital wallets and credit cards, Tap to Pay on iPhone will provide businesses with a secure, private, and easy way to accept contactless payments and unlock new checkout experiences using the power, security, and convenience of iPhone.”
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