PayPal is developing a new app for its mobile customers, and says it may be ready to take advantage of new EU regulations called the Digital Markets Act that will come into effect next month.
The Digital Markets Act allows third-party apps to access the NFC technology that powers Apple Pay in mobile wallet apps.
According to the new guidelines, iPhone users will have the option to use a different mobile wallet by default.
PayPal has partnered with Apple to provide checkout and payment services across Apple devices as well as integration with Apple Wallet, including support for contactless tap-to-pay payments with Apple Wallet.
The payments giant says its customers are looking for ways to use PayPal outside of online payments, and it is working on offering that service.
“Customers who use our online e-commerce services need omnichannel and offline solutions, and we are working hard to provide services to our customers both online and offline,” PayPal said.
These statements indicate that the payments giant is working on something in the field of NFC mobile wallets, especially as it mentions offline solutions.
The payments giant has been trying to expand into offline payments (i.e., payments made in physical retail stores) for years without success.
It has led a number of initiatives in this space over the past decade, including partnering with retailers, working with software and point-of-sale terminal manufacturers, and providing payment options to local stores through its app.
Additionally, the company acquired mobile wallet technology, used QR codes for bulk payments, worked with credit cards for offline payments, and provided tools for offline merchants.
Although Apple Pay remains the preferred mobile payment provider in the US, the pandemic has accelerated the adoption of contactless payments.
Despite the widespread spread of mobile wallets in the European Union, a study conducted in 2023 showed that the majority of people use this technology.
Further analysis shows that the European mobile payment market is expected to reach $108.35 billion by 2024.
According to the analysis, Apple and Google have made progress in EU countries, and 90% of Europeans use PayPal services.
PayPal recently launched a number of AI-powered features, including cash back offers and smart receipts that provide suggestions for future purchases from the same brand.