PayPal eyes NFC wallet for EU market
PayPal is preparing to leverage the iPhone’s newly accessible NFC technology to develop its mobile wallet for EU customers. This move follows Apple’s recent decision to open up its NFC and Secure Element APIs to third-party developers, which is crucial for contactless payments currently dominated by the Apple Wallet. Although PayPal hasn’t officially announced this project, the company has dropped hints that it’s on the horizon.
During PayPal’s Q2 earnings call on July 30, CEO Alex Chriss highlighted that upcoming changes in Europe related to NFC present a significant opportunity for the company. Chriss also mentioned that PayPal is positioning itself to enter this space soon, potentially offering a new mobile wallet for both iPhone and Android users. This isn’t the first time he’s mentioned this possibility; earlier remarks suggested that these changes would make it straightforward for PayPal to launch a competitive wallet.
PayPal has long sought to expand its presence in offline retail, experimenting with various approaches like retailer partnerships, QR code payments, and tools for in-store merchants. However, Apple Pay has maintained a strong lead in many regions.
With nearly 90% of Europeans having used PayPal by 2022, the company sees a promising opportunity to introduce an NFC-enabled wallet. However, PayPal hasn’t yet disclosed details on the launch timeline or functionality. More information might emerge during the upcoming Goldman Sachs Conference on September 9, where PayPal’s European strategy will likely be discussed.
