Talks between Apple and PayPal regarding Apple Pay partnership soured following PayPal’s deal with Samsung, reports Bank Innovation. The outlet says that the two sides began negotiations early on in Apple Pay’s development, but when PayPal partnered with Samsung for Galaxy S5 payments, Apple backed out.
According to the report, PayPal’s now-former president David Marcus was categorically against the Samsung deal, knowing that it would jeopardize PayPal’s relationship with Apple. But apparently eBay CEO John Donahoe didn’t agree with the executive, and essentially forced the company into the partnership.
The outlet even goes so far as to say that this falling out was a major factor in David Marcus’ decision to leave PayPal for Facebook. And Apple, for its part, was said to be so furious with PayPal after this, that it cut the company out of Apple Pay altogether—it’s not currently listed as an acceptable payment platform.
It’s a shame, really, as a deal would have made a lot of sense for both parties, considering PayPal’s position in the digital payment space and Apple’s 800K+ credit card bank. I don’t think Apple Pay will suffer for the outcome, though, as Apple eventually went on to strike a deal with Stripe for Internet payments.
Announced in early September, Apple Pay will allow iPhone owners to pay for goods and services both online and in physical stores using their handsets. The service, which is expected to launch next month, has already garnered the support of several major credit card issues, financial institutions, and retailers.