PayPal preparing to rival Apple Wallet in EU

PayPal is gearing up to leverage the newly accessible NFC (near-field communications) capabilities on iPhones to create a mobile wallet for users in the European Union. This potential development follows Apple’s recent announcement allowing third-party developers to utilize NFC and Secure Element APIs, which facilitate contactless transactions similar to those offered by Apple Wallet. While PayPal has not officially confirmed its plans, CEO Alex Chriss hinted at the opportunity during the company’s second-quarter earnings call, suggesting that changes in Europe regarding NFC would enable PayPal to enter this space soon. Chriss has previously indicated that the NFC updates would simplify the process for PayPal to provide a wallet compatible with both Android and iPhone operating systems. The company aims to deliver a comprehensive solution for its merchants, extending beyond e-commerce to include offline transactions through a PayPal mobile app. This aligns with the EU’s Digital Markets Act (DMA), which allows consumers to set third-party wallets as their default, creating a competitive environment for app developers. The introduction of a fully functional mobile wallet would mark a significant achievement for PayPal, which has long sought to establish a foothold in offline retail. The company has explored various strategies, including partnerships with retailers, point-of-sale software integrations, and QR code payments. Despite these efforts, Apple Pay remains a dominant player in the mobile payments sector, particularly in Europe, where Google Pay and Apple Pay lead the market. As of 2022, 90% of Europeans had used PayPal’s services, presenting a promising opportunity for the company to capture a share of the NFC wallet market. However, PayPal has refrained from providing specific details about the wallet’s launch or functionality, directing inquiries to its recent earnings statements for further insight.