Speaking during the company’s latest earnings report earlier this week, Apple CEO Tim Cook hinted that the company might finally be ready to launch its own mobile payments service. Now PayPal is offering to help out in any way it can, though whether Apple partners with the eBay-owned company is still up for debate.
PayPal has apparently offered to lend a hand without taking any of the credit, using its already-developed technology to help Apple detect fraud, run the back-end or process payments. “They’re telling them, ‘We’ll do it in the background,” one insider told Re/code. “Basically, it’s just, ‘We want to be a part of this.’”
The popular online payment service has a lot to lose if Apple declines its offer. PayPal has already started making a push into brick-and-mortar stores, but Apple could take a huge bite out of that business if it decides to turn every iPhone into a credit card. Unfortunately for PayPal, Apple will reportedly run the new service on its own, according to two more sources who spoke to Re/code anonymously.
As for how Apple’s mobile payments could work, the company has several options. Touch ID already lets iPhone 5s owners make App Store purchases with their fingerprint. The company could also leverage its massive iTunes user base, since most accounts are already linked to credit cards.
Whichever method Apple chooses, we just hope it rolls out mobile payments in the near future. However, considering the company’s tendency to kick around new ideas (iWatch, iTV etc…) for a while before announcing an official product, it may still be a while before iPhone users can start leaving their credit cards at home.