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Apple, PayPal Talks Over Apple Pay Ended After Deal With Samsung

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ApplePay

According to a report from Bank Innovation, Apple and PayPal were in talks to make PayPal the preferred payment process for Apple Pay.

The report notes that those talks ended immediately after PayPal made a deal with Samsung to allow Galaxy S5 users to make payments with the device’s built-in fingerprint scanner. Apple seems to be annoyed with PayPal and even excluded them from the developer documentation of Apple Pay, meaning they did not make the list of acceptable payment platforms that can be used when making transactions with Apple’s new mobile payment system.

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, a move that was reportedly forced onto PayPal by eBay CEO John Donahoe. PayPal’s now-former president David Marcus was purportedly categorically against the Samsung deal, knowing that it would jeopardize PayPal’s relationship with Apple. Donahoe won the day, however.

PayPal recently launched an ad campaign that subtly attacks Apple’s security issues with iCloud. The company is suggesting that PayPal is the safer platform for handling and transferring your money.

During its media event a few weeks ago, Apple announced its new mobile payment system called Apple Pay which allows users to use NFC and Touch ID found on the new iPhone 6 and iPhone 6 Plus to make payments.

Apple Pay will be available in the U.S. starting next month as an update to iOS 8. The company will also launch a new Apple Pay API which will allow developers to integrate the new mobile payments system into their own applications.

At launch, Apple claims that their new payment system will work at over 220,000 retails stores within the United States, including Nike, Macy’s, and Walgreens. The company says it is working “very hard” to expand the payments system to other countries.

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  • These CEOs!! Big position, no brains. No foresight!

  • Junglee

    Hopefully apple pay isn’t a big bug like ios8

  • baitbus

    Hopefully eBay eliminates paypal from their payment systems as paypal Is a pain in the ass. I never liked paypal in the beginning.

  • Allo Allume

    eBay owns PayPal 😉

  • Erik Kappel

    Seriously, everything crashes since iOS8… Everything was broken on iOS7. I’m so freaking done with Apple at this point :/ Wasn’t the point of paying out the nose for their hardware, that their software was solid and painless to use?

  • Erik Kappel

    Wtf kind of attitude is this?

    Apple: “We want to be open and do payments right!”

    Apple: “FU PayPal, how dare you partner with someone other than us!!”

  • Sounds to me like you have a hardware issue as I haven’t experienced any of that. iOS7 was rock solid unless you’re still running 7.0 or something?

  • Geoffrey Spencer

    Hopefully over time Apple and Paypal will kiss and make up or next year (based on rumours) Apple Pay will be available for developers and Paypal will get in this way. More choices are always better. I am going to have to wait though as I am in Canada and Apple Pay is U.S. only for maybe quite a while. I am still waiting for iTunes Radio and Beats to come to Canada.

  • Erik Kappel

    No I was always on the latest version. One small example I can give that I encountered on a daily basis: The international keyboard button, that I would use to switch between English and Emoji, well it never worked on the first press, it took two presses to switch from Emoji to English (though English to Emoji worked in one press). Just one of the many frustrating bugs I would encounter.

  • Tobi

    That maybe so, but eBay does plan to split from PayPal by 2015. I guess eBay wants to be like aliexpress

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