PayPal announced Thursday it plans to support Apple’s Tap to Pay on iPhones.
Without giving a firm start date, the company revealed that merchants will “soon” be able to accept Apple Pay payments through the Paypal or Venmo app on their iPhones. The company announced the news via its Q3 2022 earnings report(Opens in a new window).
Apple first announced(Opens in a new window) Tap to Pay on iPhone in February. The feature allows merchants to use their iPhone to accept Apple Pay alongside other digital wallets through a simple tap, effectively turning their device into a contactless payment terminal. All it takes to work is to bump iPhones together.
However, Tap to Pay is currently only available on iPhone XS and later models. And it’s not available everywhere yet: Walmart for example does not accept(Opens in a new window) Apple Pay at its over 4,700 US stores.
The feature uses near-field communication (NFC) to securely transmit payments from a linked credit/debit card or Apple Cash account data. Apple launched the feature with Stripe, before the Jack Dorsey-led Square came onboard as a further payment option in September.
In a statement, PayPal’s President and CEO said: “We’re very pleased to be working with Apple to enhance our offerings for our PayPal and Venmo merchants and consumers”.
PayPal also plans to include Apple Pay as a payment option in the company’s Commerce Platform, per an AppleInsider report(Opens in a new window). And last month, the company introduced(Opens in a new window) A new secure login method called Passkeys which will allow users to bypass using a password when accessing their accounts.
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In October, Amazon added Venmo as a payment option for US customers ahead of Black Friday sales. All customers will have to do is add their Venmo account when optioning a payment method during the checkout process. Shares of PayPal, Venmo’s owner, surged 7%(Opens in a new window) in response to the announcement.
In its earnings report, PayPal announced $6.85 billion in revenue and 11% year-on-year growth.
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