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PayPal to Collaborate on Apple’s Mobile Payment System

Since the introduction of the iPhone 5s and its Touch ID there has been much talk about the uses Apple would have reserved for the fingerprint sensor. Last Monday, in the round of questions after the presentation of the Q1 2014 fiscal results, Tim Cook already gave clues assuring that they were considering working on a mobile payment platform using such sensor .

This has triggered alarms at the mobile payment companies that have started to move. As we learned today Paypal, the payment system owned by eBay, is trying to get an agreement with Apple to collaborate on this new payment system . Apple would be willing to delegate parts of its service, such as fraud detection measures or even the processing of payments to other companies.

PayPal to Collaborate on Apple’s Mobile Payment System
PayPal to Collaborate on Apple’s Mobile Payment System

That’s where PayPal would come in. According to the sources, it is trying to be part of any payment system involving the iPhone and therefore would be willing to handle the background work for Apple, giving up part of its payment system . Despite this, it is unlikely that Apple will need the services of PayPal, although that does not mean that an alliance is ruled out.

The fact of not achieving such an alliance could be a cause for concern for PayPal , which would see a very powerful competitor in the field of mobile payment appear out of nowhere.

As we told you before, this week Tim Cook suggested that his company could offer a mobile payment system in the future, based on the iPhone 5s’ Touch ID. Cook said that Apple was intrigued with mobile payments and admitted that it was one of the features they had reserved for Touch ID .

Earlier this month, an Apple patent was filed detailing an iBeacons-based payment system, along with NFC using an iPhone to authorize transactions. We don’t know when and how Apple will introduce this payment system, or even if it will ever do it, but with almost 600 million accounts created, many of them with an associated credit card, using Passbook and the Touch ID Apple has a good base from which to start .

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