PayPal: Threat From Apple Pay Becomes Real

PayPal shares climbed today although analysts are beginning to debate the implications from Apple Pay officially becoming available on the web. Some analysts see Apple Pay's expansion from devices and apps to the web browser as presenting a serious danger to PayPal, while others say there's plenty of room in the market for both to thrive.


PayPal endangered by Apple Pay
Piper Jaffray analyst Gene Munster, who has an Underweight rating and $34 per share price target on PayPal, said the company is in serious danger by Apple Pay's expansion to browsers. He notes that this will make the iPhone maker's payments platform available on platforms that amount to more than 30% of PayPal's total purchase volume, including Mac, iPad and iPhone. He believes PayPal shares were unaffected by the announcement because they have been underperforming recently and because Apple management didn't mention mobile browsers.

Munster sees Apple Pay as being a better mobile payment solution at the point of service, and when it becomes available as an option online, he sees it as a legitimate threat to PayPal's staying power. He adds that although it hasn't been confirmed yet, sources said Apple Pay will become available on mobile web browsers very soon as well.
PayPal's competitors may be able to beat pricing

SORRY!

This content is exclusively for paying members. Access all of our content on including years of timeless investment news and in depth analysis for only a few dollars a month by signing up here while also supporting quality content and journalism, or learn more about our premium content here

If you are subscribed and having an account error please clear cache and then cookies if that does not work email support@valuewalk.com and we will get back to you as quick as humanly possible


Saved Articles
X
TextTExtLInkTextTExtLInk

The Life and Career of Charlie Munger

Charlie is more than just Warren Buffett’s friend and Berkshire Hathaway’s Vice Chairman – Buffett has actually credited him with redefining how he looks at investing. Now you can learn from Charlie firsthand via this incredible ebook and over a dozen other famous investor studies by signing up below:

  • Learn from the best and forever change your investing perspective
  • One incredible tidbit of knowledge after another in the page-turning masterpiece of a book
  • Discover the secrets to Charlie’s success and how to apply it to your investing
Never Miss A Story!
Subscribe to ValueWalk Newsletter. We respect your privacy.

Congrats! Are you a smart person?

We have an exclusive targeted for being a sophisticated and loyal reader.

Sign up for ValueWalkPremium today and get our exclusive content for 35% off.

Use coupon code vip19 or click on the button below

Limited time offer only ENDS 12/31/2019 or after next 25 subscribers take advantage whichever comes first – please do not share this discount with others

 

0