This post was originally published on this site
PayPal is preparing to use the iPhone’s NFC capabilities, which were recently opened up, to create a mobile wallet for EU users. Apple announced earlier this month that it would give third-party developers access to new NFC and Secure Element APIs. These APIs power contactless payments and transactions, like those enabled by Apple Wallet. PayPal hasn’t confirmed that it will develop a rival wallet using these new APIs. However, the company has hinted at this in recent weeks.
PayPal CEO Alex Chriss, during the payment giant’s second-quarter earnings call on July 30, responded to a question about PayPal’s European Strategy by noting that “some of these changes are coming especially in Europe around NFC,” which would allow PayPal to “be ready soon to be able play in that area.”
Chriss has teased mobile wallets before. In the previous quarter, he stated more directly that the NFC improvements would make it “very simple” for PayPal “to provide a wallet on an Android or iPhone operating systems.”
had also previously touted it planned to be in a position to deliver to customers “both online” and “offline,” suggesting that PayPal merchants were interested in an omnichannel service that went beyond ecommerce. In this case, an offline solution is likely to refer to the plan to offer NFC transactions through a PayPal app.
In the EU, consumers can choose a third-party wallet to be their default instead of Apple Wallet. This is part of Apple’s compliance to the Digital Markets Act. This legislation opens up new opportunities for app developers. These include those related to how apps can be distributed outside the App Store. using alternative browser engines, and requesting interoperability with iOS hardware and software features, such as the Secure Element, which is involved in NFC transactions.
PayPal would be very happy to finally be able offer a fully-functional mobile wallet, as it has been trying to establish itself for a long period of time in the offline retail world. PayPal has pursued many opportunities over the years. These include partnerships with national retailers, deals with point-of sale software and terminal makers, features to pay local stores via its app, acquisitions of mobile wallet technologies, the use of QR code for retailer payments, partnerships with credit card companies on offline payments, and tools for merchants who sell offline. Apple Pay is still the most popular due to the growth in contactless payments.
PayPal’s NFC-based wallet is a great opportunity in Europe. 90% Europeans will have used its services by 2022. However, Google Pay and Apple Pay are the leaders when it comes to mobile payments.
PayPal declined to comment on its plans to create an NFC wallet. They refused to provide any further information, such as when or how the wallet would be launched. Instead, they referred to their recent earnings statements for guidance. Chriss will be speaking at the Goldman Sachs Conference in September, where PayPal’s EU plan will undoubtedly be discussed.
