updated 11:36 am EST, Thu January 30, 2014
PayPal tech would be 'white-labeled' to blend into Apple system
PayPal has approached Apple about integrating itself into the latter's rumored payment technology, three payment industry executives claim. The people tell Re/code that PayPal is effectively willing to white-label portions of its payment service if Apple is willing to use them. Some shared components might include fraud detection, backend infrastructure, and actual payment processing.
Two of the executives suggest it's unlikely Apple will actually need PayPal's help, but aren't ruling out the possibility of a deal. In any case the sources say that Apple has finally decided to go ahead with a mobile payment system, but that it's unclear which technologies it will pick, and how deeply it wants to get involved in retail past the point of purchase.
For PayPal, integrating with Apple could be important to maintaining its business. PayPal has been expanding its own retail payment system, which competition from Apple might threaten. The company would face even steeper challenges if Apple's system applied to both online and brick-and-mortar stores, since web transactions are PayPal's core business.