PayPal may profit from Apple-EU settlement, analyst says
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Apple’s (AAPL) settlement with European Union antitrust regulators, announced early on Thursday, could allow the iPhone maker to open its Near-Field-Communication technology to third-party payment providers in the U.S., such as PayPal (NASDAQ:PYPL).
Previously, only AAPL’s mobile wallet Apple Pay used to allow iPhone users to pay with their devices in stores and online.
The NFC technology enables tap-to-pay, so the settlement potentially could open the door for tap-with-Venmo, Mizuho analyst Dan Dolev wrote in a note to clients, noting there’s strong appetite among U.S. consumers for such a feature.
What’s more, he added, “we estimate that 40% of Venmo’s funding mix is via stored balance, which comes at zero transaction cost to PYPL and thus can lift transaction margin dollars.”
In Thursday midafternoon trading, PayPal (PYPL) advanced 1.5%, while Apple (AAPL) dipped 2.1%.
Last month, eBay said it will be adding PayPal’s (PYPL) Venmo as a payment option at checkout.