A new report just surfaced that PayPal pitched a partnership proposal to Apple Inc. (NASDAQ:AAPL). This report comes from Recode citing unnamed sources.
PayPal wants to team up with Apple
The sources claim PayPal (which is owned by eBay) is clamoring to work with Apple Inc. (NASDAQ:AAPL). The company is even willing to white-label parts of payment service to be utilized in Apple’s mobile payments system for anything from fraud detection to back-end structure.
Although it’s highly unlikely Apple Inc. (NASDAQ:AAPL) will feel the need to join forces with Paypal, it’s still a possibility. Now that the Cupertino-based tech giant allows users to make purchases with their iPhones at brick-and-mortar stores, it’s still unknown where Apple will take this. If a recent patent application proves anything, NFC technologies could herald a future that goes far beyond the retail counter.
Strong possibilities for PayPal’s future
Recode’s Jason Del Rey added, “This could be a scary proposition for PayPal if it doesn’t figure out a way to partner with Apple Inc. (NASDAQ:AAPL). The eBay subsidiary has been investing in a series of new products and ways for PayPal customers to use its service in retail stores to try to grab a piece of brick-and-mortar transactions, which still make up anywhere from 85 to 95 percent of total commerce transactions. And while PayPal’s initiatives are admittedly in their early stages, Wall Street is watching them closely, viewing them as one path toward a new avenue for growth for PayPal and eBay on the whole.”
Representatives for both companies declined to make a statement.
It was reported that Eddy Cue has been in talks with other industry executives discussing the possibility of Apple handling payments for tangible goods and services. Last year, the Cupertino-based tech giant announced there was 575 million iTunes accounts, most of which were linked to credit cards. This means Apple Inc. (NASDAQ:AAPL) could easily introduce a “Pay with Apple” system that would be linked to iTunes and possibly Passbook.