Apple Pay

eBay Stock Sinks On Apple Pay News

Shares of online auction giant eBay dropped almost 3 percent on the day Apple unveiled its new Apple Pay mobile payment system, USA Today reported.

Apple Pay, which will let iPhone users pay for purchases in brick-and-mortar and online stores using their iTunes accounts starting in October, will be a direct competitor to eBay’s PayPal. PayPal announced a similar touch payment system for mobile commerce called One Touch PayPal in August.

PayPal has also let customers pay in-store using PayPal since 2012, but the service has not seen much use despite high-profile rollouts at Home Depot and other chains. Unlike Apple Pay, PayPal’s system does not use a mobile phone to make contactless payments.

Apple’s mobile payments system uses a near field communication (NFC) chip in its newest iPhones to enable in-store payments. NFC-equipped phones are also used in mobile payment systems from Google and SoftCard (formerly known as Isis). The earlier NFC-based systems have yet to show substantial use, and Google’s version cost the search giant money for every transaction.

Apple’s new version, which also uses fingerprint-based authentication, faces similar uptake challenges. Apple says 220,000 U.S. stores are equipped to accept payments with Apple Pay. However, there are roughly 9 million merchants in the U.S. that accept cash and credit cards, according to Forbes.




Featured PYMNTS Study:

More than 63 percent of merchant service providers (MSPs) want to overhaul their core payment processing systems so they can up their value-added services (VAS) game. It’s tough, though, since many of these systems date back to the pre-digital era. In the January 2020 Optimizing Merchant Services Playbook, PYMNTS unpacks what 200 MSPs say is key to delivering the VAS agenda that is critical to their success.

Click to comment