PayPal Wants in on Apple's Mobile Payment System

The online payment service PayPal is hoping to get in on whatever Apple has planned for a mobile payment system and has even gone so far as to pitch its ideas to the iPhone and iPad maker. PayPal is apparently willing to be a part of Apple's back end systems without any branding, hinting that it sees whatever plans Apple may have as a very big deal.

PayPal wants in on Apple's mobile payment actionPayPal wants in on Apple's mobile payment action

Sources speaking with Re/code said PayPal is telling Apple, "We'll do it in the background," adding, "Basically, it's just, 'We want to be a part of this.'"

Rumors have been circulating that Apple is working on some sort of digital wallet and payment system for the iPhone. Some have claimed those plans include NFC technology, but it's more likely the company will go with a combination of TouchID, Passbook, and iBeacon -- all of which are technologies it controls.

Assuming the sources are correct, it isn't a surprise that PayPal would want to find a way to be a part of Apple's mobile payment plans. With so many iPhones already in use, there's already a massive user base in place to take advantage of the service, and those users could start using Apple's payment system instead of PayPal.

PayPal is willing to offer Apple parts of the system it needs to handle payments, such as fraud detection, and would be happy to handle payment processing, too.

Apple CEO Tim Cook dropped some big hints about the company's plans to get into mobile payments during the company's fiscal earnings conference call earlier this week. He commented on how popular TouchID has been for authenticating iTunes Store purchases on the iPhone 5S, and followed up by all but confirming Apple's plans saying,

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

That's a pretty big shot across the bow for PayPal, and the company is smart to proactively work to get in on Apple's plans. If the two companies aren't partners in the mobile payment game, PayPal could have some serious competition on its hands.