How Apple Pay's success has compromised PayPal's interests

According to U.S. media reports, Apple's new payment system is expected to change the way people shop in stores and applications, and the largest online payment network PayPal poses a big threat. In addition to allowing people to pay in stores, Apple pay also allows iphone 6 and iphone 6 Plus users to use credit cards for shopping in participating applications.

In the long run, the success of Apple pay will damage PayPal's interests, mainly because of the following points:

1, Apple released the first batch of "highly recommended" payment partners list, including the stripe and the top 6 companies that can handle Apple Pay applications. But PayPal new mobile application payment processing department Braintree not included. Braintree recently announced that it will help integrate applications running on its platform with Apple Pay.

The result of this integration is that applications that use Braintree payments can also use it to handle Apple Pay, which means consumers will see both the Apple Pay and the PayPal button. PayPal (via Braintree) will gain, regardless of the way consumers pay, but when the consumer clicks on the Apple Pay button, it usually returns without clicking on the other button.

2, PayPal Braintree has to allow users to transfer the consumption of can. Customers who have can or PayPal applications can use PayPal's "One-touch" payment system to pay in the application. But you need to register can or PayPal and download one of the apps. Apple Pay does not need to register and download.

3, in Mobile application payment, PayPal is now competing with Apple and Google. PayPal has a traditional advantage, but Apple and Google have a bigger impact on consumers. If Apple and Google's payments are growing, PayPal is bound to get hurt. PayPal and Braintree their buttons as a convenient way for developers to use their systems, but in the area of application payments, the system lost its unique status as Apple Pay entered.

4, in the consumer will bank account with PayPal directly bundled, PayPal usually make more. PayPal's Braintree Department says it will also handle Apple Pay purchases if the business requires it. While this can also get some processing or related payments, they make less profit because Apple Pay only bundles personal credit cards or card, rather than bank accounts.

As for E-commerce, Apple Pay has an impact on PayPal, which pays attention to application payments, and if Apple Pay expands to a mobile network, things will get worse.