Apple’s growing financial technology tools and services are pulling in PayPal and Venmo offerings.
The payments company announced that it is working with Apple on several initiatives "to enhance our offerings for PayPal and Venmo merchants and consumers."
It said in an earnings release it is “leveraging Apple's Tap to Pay on iPhone technology.” As part of the deal, “U.S. merchant customers will soon be able to accept contactless debit or credit cards and mobile wallets, including Apple Pay, using an iPhone and the PayPal or Venmo iOS app.”
In addition, PayPal is “Adding Apple Pay as a payment option in PayPal's unbranded checkout flows on merchant platforms, including the PayPal Commerce Platform.”
And in the third initiative, “Next year, U.S. customers will be able to add PayPal and Venmo network-branded credit and debit cards to Apple Wallet and use them anywhere Apple Pay is accepted.
Apple introduced its Tap to Pay technology earlier this year, allowing its phones to act in the same way contactless credit cards do at checkout stands in retail businesses.
PayPal and Venmo offer alternative tools for making payments, allowing easier fund transfers among friends and for merchants.
The financial tech surge is growing, creating alternatives to traditional banking and financial services and tools. The technologies go beyond simply branding credit cards with corporate names. Instead, technology is quickly changing the way transactions are made, posing an increasing threat to established financial services companies.