According to the source, ITG Investment Research estimates that with its current adoption pace, Apple Pay could top Googles market share by the end of January 2015.
But more importantly, the source adds, Apple Pay could pose a major threat to PayPal, according to ITG. Despite the fact that Apple Pay is still vertically bound to serve just its own customers and is supported by a relatively limited list of merchants, the new service has advantages that PayPal may not be able to overcome.
Analyst Steve Weinstein believes that PayPal suffers from a challenging relationship with payment counterparties and cant provide the biometric security functionalities that Apple Pay can. Apple Pay also has the power of the brands affinity and an ease of use that will be difficult for competitors to overcome, the source concludes.
In recent news, PayPal has unveiled that it has introduced the PayPal mobile app for BlackBerry in the US, UK and Australia, with more markets to come in the future.
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