Apple Inc. (NASDAQ:AAPL)’s online retail stores in the United States and United Kingdom now accept PayPal as a payment option. This gives shoppers yet another safe payment option.
PayPal is now available through Apple Online Store
PayPal is no stranger to Apple. The payment service is already used by iTunes and App Store. Starting today, shoppers can pay for their new iPhone, iPad, and Mac with this payment option. At press time, it is not offered on the Apple Store app.
Apple will also promoted PayPal Credit payment methods allowing online shoppers to pay on orders of $250 or more with credit over 18 months minus interest.
Apple Pay’s direct competition against PayPal
What is most interesting about this partnership is the complicated relationship between both companies. Late last summer, the Cupertino tech company launched Apple Pay as a direct competitor against PayPal. This new payment system would reduce the need of carrying credit cards and protect their financial information at the same time. iPhone 6 users can use pay with Touch ID at a variety of retailers including Apple Store, Aeropostale Inc (NYSE:ARO), Disney Store, Duane Reade, Macy’s, Inc. (NYSE:M), McDonald’s Corporation (NYSE:MCD), Meijer, Sephora, Whole Foods Market, Inc. (NASDAQ:WFM), and more. Apple Pay is compatible with three major credit cards including Visa Inc (NYSE:V), American Express Company (NYSE:AXP), and Mastercard Inc (NYSE:MA). Apple Pay is currently compatible with a limited number of banks including Capital One Financial Corp. (NYSE:COF), Bank of America Corp (NYSE:BAC), JPMorgan Chase & Co. (NYSE:JPM), Citigroup Inc (NYSE:C), SunTrust Banks, Inc. (NYSE:STI), U.S. Bancorp (NYSE:USB), Wells Fargo & Co (NYSE:WFC), American Express Company (NYSE:AXP), Barclaycard, NavyFederal Credit Union, PNC Financial Services Group Inc (NYSE:PNC), Regions Financial Corp (NYSE:RF), USAA, and more.
Not long after Apple Pay was introduced, Paypal took advantage of the iCloud celebrity photo leak scandal and used it as fuel against rival. Back in September, Colin Sebastian (analyst for Baird) stated his thoughts on Apple Pay’s strengths. He said, “We believe Apple Inc. (NASDAQ:AAPL)’s closed-platform, software expertise, and brand power position it well. Additionally, integration with its anticipated wearable device could be a key feature. We believe mobile payments could be a significant opportunity.”