Apple has been a pioneer in “disruptive technology” and now it is likely to seriously disrupt Paypal’s dominance in internet payment. According to reports, Apple has deals with Mastercard, Visa and American Express, and its iPhone 6 may have a digital payment system that will be a huge threat to Paypal.
Colin Sebastian, analyst at Baird, says Apple’s new iWallet is an “elephant in the room” for Paypal, and added, “While there is no shortage of competition in payments, we view Apple as perhaps the most legitimate threat to Paypal’s strong position.”
“We believe Apple’s closed-platform software expertise and brand power position it well.” Integration with its wearable devices will be an added plus for the company. The company has 800 million iTunes accounts, many linked to credit cards, as well as having advantages with its AppStore. Apple’s iOS was found, according to IBM, to be the dominant way of making mobile payments in an environment where such transactions are expected to increase exponentially.
While the 70s was the “Me” generation, the 21st century is definitely the “i generation.”