PayPal is gearing up to capitalize on Apple’s recent expansion of NFC (near-field communication) and Secure Element APIs by crafting a mobile wallet specifically for European users. This move comes in response to Apple's decision to open up its NFC capabilities, which currently support contactless payments through Apple Wallet.
In a recent earnings call, PayPal CEO Alex Chriss hinted at the company’s plans to enter the mobile wallet space, particularly in Europe. Chriss highlighted that the changes in NFC technology would provide PayPal with a significant opportunity to enhance its services and compete directly with existing solutions like Apple Wallet.
The discussion around NFC has been building for months. Back in April, Chriss mentioned that these changes would simplify the process for PayPal to integrate a wallet into both Android and iPhone operating systems. This aligns with the company’s broader strategy to offer an omnichannel solution that encompasses both online and offline transactions.
As part of Apple's compliance with the EU's Digital Markets Act (DMA), third-party wallets will now be able to serve as the default option for users. This regulation opens up new avenues for app developers, allowing them to leverage iPhone hardware and software features like NFC to offer alternative payment solutions.
For PayPal, a successful launch of its mobile wallet could mark a significant milestone, especially as the company has long sought to make inroads into offline retail. Despite various efforts, including partnerships and acquisitions aimed at expanding its presence in physical stores, Apple Pay and Google Pay have remained dominant players in the mobile payments sector.
Given that PayPal services were used by 90% of Europeans as of 2022, the introduction of an NFC-based wallet could strengthen its foothold in the region. Although PayPal has not yet disclosed detailed plans or a launch timeline, Chriss is expected to provide further insights at the Goldman Sachs Conference on September 9.
As PayPal prepares to make its move, the forthcoming developments in its European strategy will be closely watched, potentially reshaping the landscape of mobile payments across the continent.
