XAutoplay: On | Off PayPal users will be able to buy products at the iTunes store starting today in the U.S., Canada, Mexico, Israel, Australia and in much of Europe, including the U.K., France, Germany and Spain, the company said in a blog post Wednesday.
“PayPal customers will be able to pay for App Store, Apple Music, iTunes and iBooks purchases across iPhone, iPad and iPod Touch devices using their PayPal account. This provides a secure and versatile payment method to meet the growing demand for digital entertainment.”
Square (SQ), viewed by Loop Capital as an acquisition target of PayPal, broke out of a base Tuesday with a 25.07 entry. Square rose 3% to 26.21, still in buy range.
PayPal did not disclose terms of the iTunes deal, such as any revenue-sharing with Apple from online purchases. Apple has enabled iPhone and iPad users to make purchases using credit card networks and bank debit cards.
PayPal will be listed as on option on the iTunes settings menu. PayPal users will be able to buy apps, digital music, movies, TV shows and books, as well as Apple Music subscriptions and iCloud storage.
“PayPal’s availability across Apple’s services further expands our vision of providing customers a variety of ways to easily make mobile purchases, such as asking Siri to make a payment using the PayPal app,” the company said.
IBD’S TAKE: Square, another digital payments processor, has been added to IBD’s Swing Trader list, where the CAN SLIM strategy is employed for quick hits — most trades will last five to 10 days, with a goal of a 10% profit and any loss capped at about 3%.
JPMorgan analyst Tien-tsin Huang said the deal is positive for PayPal.
“While difficult to size, the deal is significant as it provides yet another example of a payment foe (Apple Pay) choosing to work with PayPal as a payment partner,” Huang said in a report.
PayPal, meanwhile, has hired Mark Britto, a former executive at Amazon.com (AMZN), to lead its lending business. PayPal in May announced that it has issued more than $3 billion in loans to 115,000 small businesses globally since 2013.
Since spun off from eBay (EBAY) in 2015, PayPal has evolved from a payment button to a broad payments service provider, while expanding from online checkout to mobile payments.