PayPal will prepare a new mobile application. With its help, it intends to take advantage of new EU regulations.
PayPal is one of the companies that sees potential in the European Digital Markets Act. The new regulations will make it possible for third-party applications to gain access to contactless payments on smartphones. We will therefore be able to use alternative mobile “wallets” to pay contactless. This is especially important for iPhone owners who are currently limited to Apple Pay.
PayPal is preparing NFC payments
PayPal has announced that it will be ready to implement DMA requirements on iPhones. Unfortunately, we don’t know much about the details of the project yet, because the company communicates in quite general terms. PayPal certainly works closely with Apple, and CEO Alex Chriss sees the Coupertino company as a “great partner”.
PayPal also sees that its customers would also like to use its services offline, for example when shopping at stationary locations with an Internet connection, which is currently impossible. At the same time, it is closely monitoring the potential of access to NFC payments, which the DMA directive will open in European markets. Hence the assumption that PayPal is preparing an application enabling contactless payments with a smartphone.
It is worth noting that PayPal has been trying to enter this field for over 10 years. He tried cooperation with American retailers and food chains, contracts with payment terminal manufacturers, cooperation with payment card operators, QR code payments, issuing tools for sellers and many similar solutions. In vain. In its home market, it is still overshadowed by Apple Pay, and even the COVID-19 pandemic hasn’t helped.
It is therefore not surprising that PayPal sees an opportunity in Europe. Not only will DMA eliminate many obstacles, but we also have a very high level of adoption of mobile payment systems. And a large group of PayPal users. Such an opportunity cannot be wasted. The application is scheduled to be made available in 2024.