There has been a major announcement in digital finance today: Apple has revealed it will be adding PayPal as a new payment method on the App Store, iTunes, iBookstore and Apple Music.
While it mightn’t mean much to some retailers, it should. This is the second big announcement in payments this week, after Stripe announced they are enabling WeChat Pay and Alipay in their checkout system – signaling a big shift in the marketplace around multiple payment methods.
A YouGov survey found that 50% regular online shoppers would cancel their purchase if their preferred method of payment were not available and 40% said they would feel more comfortable purchasing from an online retailer who offers multiple payment methods.
With that considered, it is clear the addition of PayPal to Apple checkouts will likely increase the tech giant’s rate of conversions.
It’s also a win for PayPal, who has been at war with Apple since Apple Pay was launched in 2014. As discussed by Jason Del Rey from Re/code, PayPal had a lot of catching up to do when the one-touch rival payment method came along. As predicted by Del Rey, Apple Pay has since become web-friendly, forcing PayPal to create its own rival wallet within its secondary payment gateway Braintree. Then, PayPal not only purchased Paydiant, a mobile wallet tech developer, in 2015, but also acquired Xoom, a money transfer service, in 2016.
At the time, PayPal CEO Daniel Schulman said:
“We think about reimagining the movement of money for the entire world…We used to be a button on a website, but we aspire to be so much more”
And while PayPal currently leads the way for online payments, in 2016, Apple Pay grew new accounts by 200%, versus only 10% for PayPal. It begs the question: could the inclusion of PayPal in their checkouts mean Apple has conceded defeat, or is it a cleverly crafted move in the all-out digital wallet war?
The PayPal payment method for Apple IDs has already launched today in Mexico, Australia, Canada, Germany, the Netherlands and the UK, and will launch in other regions soon.
What do you think about Apple adding PayPal as a payment method? What payment methods do you offer your shoppers?
For more insight into payment methods around the world, check out our market insights here.
Because the online shopping experience is ever-evolving, retailers need to keep their finger on the pulse, especially when it comes to payment methods they provide. eShopWorld’s global payments platform supports more than 50 locally preferred payment options around the globe.