PayPal is on a war path of sorts. The company aggressively expands its presence globally and continues to pursue beneficial partnerships. It even forged a strategic agreement with Apple, something people considered inconceivable not long ago.
Apple and PayPal Join Forces
Everyone knows Apple is rather protective of its payment system. That includes the native App Store, where only select payments are valid. Incorporating a solution like PayPal onto the platform has never been done due to Apple taking a hefty cut on all transactions. However, things may change soon, as both companies agreed to a new partnership. More specifically, PayPal and Venmo will support Apple’s Tap to Pay on iPhones in 2023.
Moreover, PayPal merchants and consumers can use Apple Pay to accept and complete transactions. A remarkable development, although it brings much-needed flexibility to PayPal’s ecosystem. For merchants, it introduces an extra option to earn revenue. Anyone with an iPhone can use the PayPal or Venmo iOS app to accept contactless card payments and mobile wallet transactions. It is a positive development overall and one that expands Apple Pay’s appeal.
Conversely, Apple Pay will support PayPal and Venmo credit/debit cards. That benefits consumers who want to use these two payment solutions together, which wasn’t possible earlier. That said, integrating PayPal and Venmo was a matter of time. Apple partnered with Stripe and Square on its Tap to Pay feature earlier in 2022.
Following the new partnership, the two most used digital wallet platforms have become interoperable. US Retailers show favoritism toward Apple Pay – with an estimated 500 million users. PayPal has over 425 million active accounts, with Venmo surpassing the 90 million mark. Moreover, the agreement enables PayPal’s solution to work with both Google Wallet and Apple Pay, enhancing its dominant market position.
PayPal’s Push Continues
The agreement with Apple marks a significant step forward for the digital wallet and payment provider. However, it’s not the first foray into becoming a more global presence. The company aims to take on WeChat and Grab in the coming years. Doing so positions PayPal as the go-to payment solution for in-store and online payments. Having the industry dominated by one entity is never a good thing, although many consumers and merchants will welcome the change.
The company will now pursue more collaborations and enhancements for this platform. PayPal users can access a yield savings account through Synchrony Bank as well. In addition, the firm supports cryptocurrencies, P2P payments, shopping tools, etc. There is also PayPal Monthly, a BNPL solution for consumers in the United States. The associated Rewards program – only for the US – has also been launched.
