iOS 7 teaser (iPhone 5s ad 002)

It’s no secret that PayPal and Apple partner on iTunes billing, making the payment giant one of the few billing methods available in iTunes.

Matter of fact, PayPal has existed in Apple’s payment system for years now. It would now seem that PayPal wants to run the iTunes billing backend with other retailers as the company is “willing to white label parts of its payment service,” according to a new report Thursday.

PayPal has a strong, established online presence and they’ve been partnering with a growing number of in-store payment companies so the firm could theoretically help build a rumored Apple-branded mobile payment solution…

Jason Del Ray filed this report with Re/code:

PayPal is essentially willing to white-label parts of its payment service to be used in an Apple mobile payments system — anything from fraud detection to back-end infrastructure, even possibly down to the processing of payments.

“They’re telling them, ‘We’ll do it in the background,” one of these people said. “Basically, it’s just, ‘We want to be a part of this.’”

The rumored iWallet is though to use Apple’s Touch ID fingerprint scanning with the A7’s Secure Enclave as a secure authentication method, Passbook for digital coupons and discounts and the iBeacon protocol for initiating point of sale transactions.

The solution would tap the more than 575 million iTunes accounts with credit cards enabled for one-click shopping.

The Wall Street Journal recently said that Apple’s online services boss Eddy Cue met with industry execs to “discuss Apple’s interest in handling payments for physical goods and services on its devices”.

And, Apple’s boss Tim Cook suggested in an earnings call with analysts earlier this week that the demographics of Apple users and the amount of commerce that goes through iOS devices together represent “a big opportunity” for the platform.

We’re seeing that people love being able to buy content—whether it’s music or movies or books, from their iPhone using Touch ID. It’s incredibly simple and easy, and elegant, and it’s clear that there’s a lot of opportunity there.

The mobile payments area in general is one that we’ve been intrigued with. That was one of the thoughts behind Touch ID, but we’re not limiting ourselves just to that.

Apple currently uses the iTunes billing backend to enable customers to pay for digital purchases on iTunes and physical goods sold at its online and retail stores.

Keep in mind Apple never partnered with brick-and-mortar retailers for iTunes billing.

Therefore, any comprehensive payment solution from the iPhone maker would need to be strongly supported at third-party points of sale if it wanted to be useful.

Would you pay for groceries with your finger?

Who’s looking forward to an iWallet?

  • iRy757

    Hope this holds to be true. Love using PayPal, more so than any other method of payment online.

  • David Gitman

    cant wait to use my finger to buy stuff

  • TimT2011

    Wow, I’m totally stunned, as much as I follow Apple news I never knew Paypal was involved in iTunes payments. I would not use an Apple mobile payment service if it were powered by Paypal and I’m thinking I need to change my habits in iTunes.

    • Maxim∑

      you can just use Paypal as a payment option I think you misread the quote it was talking about what paypal could do if Apple accepted this offer, Apple controls all payment stuff internally and I think they will continue to do that in the future which is probably why Paypal said this kind of desperately

      • TimT2011

        “It’s no secret that PayPal and Apple partner on iTunes billing, making the payment giant one of the few billing methods available in iTunes. Matter of fact, PayPal has existed in Apple’s payment system for years now.”

        I’m afraid I don’t see any other way to interpret that than the way I did. Paypal is involved now and wants to expand it’s involvement if Apple gets into mobile payments.

      • ✪ aidan harris ✪

        Except in my mind this is essentially a plea to Apple. They could easily do mobile payments themselves but by the looks of it PayPal wants in…

      • Liski

        It does state “one of few methods”. If you choose to pay by credit card or redeem a voucher then the payment is handled by Apple but if you choose PayPal then it’s processed by PayPal.

        If you pay with a credit card you’ll see Apple listed on your statement.

    • Xee

      Paypal cannot be trusted.

  • Modest

    Yep, I love PayPal too. Can’t wait for this.

  • Robnasty

    Now apples in cahoots with PayPal I hate PayPal I will not be using the mobile payment service if they are with PayPal payPal has rub people the wrong way with the chargebacks and frozen accounts

    • You’re probably referring to the seller experience, ’cause as a buyer, since I began using PayPal 5 years ago, I’ve never been in any problem with PayPal themselves that didn’t get solved within day or 2 by making a call to them…

  • Christopher

    Never had a good experience with Paypal

  • Dri

    no paypal option in Danish appstore.. hmm

    • Jarryd Richards

      No option on the Australian store aswell.

  • Burge

    You can use paypal for iTunes billing ? Not in the UK carn’t .
    And there’s the screen shot of the options you have in the UK.. No PayPal option. It was removed from iTunes a few years ago for UK users. I’am sure it was removed because it got hacked.

    • ✪ aidan harris ✪

      It wouldn’t surprise me if PayPal got hacked. They’ve been hacked in the past. I try to limit my interaction with PayPal as much as possible…

      • Burge

        I’am sure it was removed on iOS3. It might of even been on late iOS2.

  • jack

    Rumor on a rumor… iDB hit a new low

  • marcus1324

    This is awesome! I use my PayPal account constantly and it’s very easy and useful. Not to mention very secure as well! Apple is making a good move with this PayPal deal.

  • marcus1324

    Wow this gave me a chill :/