PayPal Strategizes for Offline Expansion Amidst EU Digital Markets Act

PayPal is gearing up for the implementation of the EU's Digital Markets Act (DMA), effective March 2024, aiming to capitalize on new opportunities arising from the regulation. One significant change under the DMA is the provision allowing third-party apps access to NFC technology, potentially enabling PayPal to create its mobile wallet application for Apple devices. PayPal's CEO, Alex Chriss, emphasized the company's close partnership with Apple, he hinted at addressing customer demands for an "omnichannel and offline solution," suggesting the development of NFC mobile wallets for offline payments, an area in which PayPal has struggled to gain traction in the past.

Despite Chriss not providing a specific timeline for the implementation of the offline solution, PayPal seems poised to leverage the changes. With Apple's new APIs and controls allowing users to select third-party contactless payment apps, PayPal could emerge as a viable alternative to Apple Pay. The move aligns with PayPal's broader strategy, hinted at with the announcement of a new consumer app and recent AI-powered features aimed toward enhancing the mobile experience. As Europe exhibits high mobile wallet penetration and a growing market, PayPal sees a substantial opportunity to expand its offline presence in the competitive mobile payments landscape.

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