Digital wallet services have mushroomed over the last five years, with major tech brands racing to stake their claim in the lucrative physical point of sale (POS) space. While established multinationals as well as fintech startups have made impressive inroads into this sector, Apple continues to hold its place as the most trusted digital wallet on the market, boasting a product accepted by more than 75% of retailers in the U.S.
As of the beginning of 2023, Apple is preparing to see even more widespread use of its popular Apple Pay digital wallet. Pursuant to a new partnership with digital payments giant PayPal, Apple is geared up to deliver on its promise of a one-stop shop for digital and physical purchases alike.
The cornerstone of the new Apple–PayPal partnership is the integration of PayPal and Venmo payment services within the Apple Pay ecosystem. The deal is expected to attract a larger share of the more than one half of American consumers who are comfortable using digital or mobile payment solutions at brick-and-mortar retail stores.
Industry experts are eagerly waiting to see if the combination of two of the top names in digital payments can offer a legitimate challenge to old-school payments servicers such as Visa and Mastercard.