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.

 

 

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LATEST PYMNTS REPORT: MARCH 2020 B2B API TRACKER  

B2B APIs aren’t just for large enterprises anymore — middle-market firms and SMBs now realize their potential for enabling low-cost access to real-time payments and account data. But those capabilities are only the tip of the API iceberg, says HSBC global head of liquidity and cash management Diane Reyes. In this month’s B2B API Tracker, Reyes explains how the next wave of banking APIs could fight payments fraud and proactively alert middle-market treasurers to investment opportunities.

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