Apple opens up its Near Field Communication Technology (NFC) to third party payment providers in the US, or opens the door to light-touch payments for Venmo, a subsidiary of PayPal.
The Zhitong Finance App learned that Mizuho Securities analyst Dan Dolev (Dan Dolev) believes that Apple (AAPL.US) opening up its Near Field Communication Technology (NFC) to US third-party payment providers may open the door to light-touch payments for Venmo, a subsidiary of PayPal (PYPL.US). He pointed out that American consumers have a strong interest in this feature.
Earlier on Thursday, Apple (AAPL.US) announced a settlement with EU antitrust regulators. Apple promised to open NFC to US third-party payment providers, such as PayPal. Previously, Apple only allowed iPhone users to pay in stores and online using devices using Apple Pay, Apple's mobile wallet.
Additionally, Dan added, “We estimate that 40% of Venmo's financing portfolio is achieved by storing balances, which is zero transaction cost for PayPal, and therefore can increase transaction margin.”
Last month, eBay (EBAY.US) announced that it would add PayPal's Venmo as a payment option at checkout.
On Thursday, PayPal closed up 1.85%, while Apple closed down 2.32%.