By BEN SHAFFER
Apple has recently come out with a new payment method, Smart Pay, that works directly from an Apple device.
Smart Pay allows the person to purchase items in an application without having to deal with filling out the payment information. The main concern is that this will greatly affect its competitor, PayPal.
The main reason why people are using PayPal as their payment option is because it is a method of payment for eBay. It is also easier to use a PayPal account verse constantly putting in the billing information.
When people purchase items, they will see both an Apple Pay and PayPal button. PayPal uses a payment partner called Braintree as a processing unit. If Apple were to also use Braintree, then PayPal will get profits even if the person presses the Apple Pay button.
PayPal’s partner, Braintree, owns a consumer app called Venmo, which gives people the ability to send money to each other.
“People sign up for PayPal and Venmo for other reasons, such as to make purchases on eBay or send money to friends, not just to make one-touch payments,” said Bill Ready, Braintree CEO.
PayPal is currently teaming up with Paydiant, a mobile payment that is being used by retailers like Subway and Walmart, in order to compete with the new Apple Pay.
Square is also in competition with PayPal and Apple Pay. Square has annually brought in over $1 billion.
As of right now, PayPal is the go to payment option that is supported by a majority of retailers. Very soon, Apple Pay may surpass the rest.