PayPal and Apple will start accepting each other’s payment products within their separate ecosystems
The deal between mobile wallet giants was presented along with the Q3 earnings report. PayPal’s net revenues for the period reached $6.85 billion, illustrating year-over-year growth of 12%, while GAAP earnings per share went up from $0.92 in Q3 2021 to $1.15.
The new strategic initiative presupposes that U.S. merchants will be able to accept contactless cards and mobile wallets, using an iPhone’s Tap to Pay technology and the PayPal or Venmo iOS app. In addition, Apple Pay will be added to PayPal’s unbranded checkout flows on merchant platforms.
With the next planned update, US customers will also be able to add PayPal and Venmo network-branded credit and debit cards to Apple Wallet. The feature is due next year.
Despite the positive results, PayPal stock dropped 9.7% in after-hours trading. The reason is weak revenue guidance corrected by the company in anticipation of an economic downturn, which might slow down consumer spending.