When Apple announced their new Apple Pay mobile payment system, there was one major payment provider who Apple did not include in the new system, PayPal.
PayPal is one of the largest online payment systems, and it would have made sense for Apple to make PayPal an Apple pay partner, and now details have emerged on why PayPal were excluded from Apple Pay.
According to a recent report, Apple and PayPal has been in talks for months about Apple’s new mobile payment service, and someone at PayPal decided to would be a good idea to partner with Samsung on the Galaxy S5 for mobile payments.
This apparently annoyed Apple, and the decided to exxclude PayPal from their new mobile payments, Bank Inovation explains below exactly what happened.
But while these talks were going on, PayPal went ahead and partnered with Samsung on the Galaxy S5 fingerprint scanner, a move that was reportedly forced onto PayPal by eBay CEO John Donahoe. PayPal’s now-former president David Marcus was purportedly categorically against the Samsung deal, knowing that it would jeopardize PayPal’s relationship with Apple. Donahoe won the day, however.
Apple was said to be absolutely furious that PayPal did the deal with Samsung, which led Apple to cut PayPal out of the Apple Pay process entirely. (One source said: “Apple kicked them out of the door.”) This dust up with Apple was a big reason that David Marcus ended up leaving PayPal for Facebook.
PayPal and eBay announced yesterday that they would be forming separate companies, which would means that this sort of thing could not happen in the future as eBay will not be able to force PayPal to do deals like the Samsung Galaxy S5 one.
Source Bank Innovation
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