Apple Inc. now partners with PayPal so that consumers will have more payment options when buying products in its stores. Those who will purchase their next iPad or iPhone at Apple’s online stores get more payment methods at hand, including the enticing PayPal credit. The credit system of the eBay subsidiary provides an option of minimum monthly payments for 18 months with $250 plus purchases at zero interest. Alternatively, there is the no payment plus no interest arrangement if the purchase is fully paid in six or nine months; that is practically getting the product now and pay it off by next Christmas.
Though somewhat expected, the Apple Inc., PayPal tandem was recently, an unlikely thing. During the debut of the current flagships iPhone 6 and iPhone 6 Plus of the Cupertino tech titan in September, it also introduced Apple Pay, a feature which turns the smartphone into a wallet, posing as PayPal’s competitor in the digital payment arena. PayPal was not mentioned to be among Apple’s partners then. Not long after the event, PayPal checked on Apple Pay’s security. At the height of the iCloud hacking which breached some accounts that resulted to exposure of celebrity nudes, PayPal hinted Apple Pay is not as secure as Apple claims.
Apple Inc. was also eyeing PayPal for a possible Apple Pay – PayPal partnership. However, the initial talks ended when the international digital wallet allowed PayPal payments through the fingerprint sensor of Samsung Galaxy S5, which allegedly annoyed Apple.
Now it is pushing through. Apple Inc. partners with PayPal for more payment options in its stores and their collaboration is advantageous to both. Apple have more ways for the consumers to afford its products, and getting another payment method that gives security and ease of use is not a bad thing at all. Furthermore, PayPal’s credit system will help more customers afford Apple’s pricier items, such as the Mac Pro, iMac Retina Display and the upcoming Apple Watch. On the other hand, the eBay subsidiary gets access to one of the largest online retailers in the United States.
Gradually integrating PayPal into its stores also indicates that Apple Inc. is not in bad terms with PayPal. The latter might even be used to make up for Apple Pay’s limitations and become its complementary service. Apple Pay may gain momentum over time, but it can only be used with iOS devices and likewise limited to the Apple ecosystem.
Apple’s integration of PayPal also shows that the interest of the Cupertino-based tech titan is more on providing convenient ways of paying that can boost the sales of its products, rather than dominating the payments sphere. PayPal has already been accepted in Apple’s digital marketplaces like the App and iTunes Music stores. It now applies to physical items as well, like iPads, iPhones, Macs, accessories and related products.
Apple Inc. partnering with PayPal for more payment options in its stores is great for the consumers too. Before the PayPal inclusion, purchasing of Apple accessories and products on the Internet only had credit cards, gift cards and special financing as payment methods. Now, PayPal will be seen among the list of payment options. When selected, the user is directed to the PayPal website to sign in and finalize the purchase. Initially, PayPal payment is limited to the U.S. and U.K. Apple websites. It does not appear in the mobile iOS app on the Apple Store yet.
By Judith Aparri
Photo courtesy of Stefan Schlautmann – Flicker License