Pay Apple turns iPhone into credit card
Apple wants to get rid of our pocket cards and credit cards. Wall Street is nervous that consumers can tip online payment service PayPal also.
Shares of PayPal owner eBay (EBAY, Tech30) fell 3% on Wednesday. This down 3% Tuesday after Apple (AAPL, Tech30) released its mobile Apple Pay follows.
Is justified 6% sell on eBay? Does Apple really only make obsolete PayPal? Yes and no.
"There is the potential for Apple to disrupt the competitive position of PayPal These are legitimate concerns. - For phones in particular," said Victor Anthony, an analyst at Topeka Capital Markets.
However, Anthony thinks PayPal will continue to report strong results from eBay for the coming quarters. He says the risk of Apple is one of the longer term.
PayPal is eBay making sexy:But it's understandable why investors would be nervous eBay. PayPal, after all, is the most exciting part of the business of eBay. PayPal revenues accounted for over 40% of all eBay sales in its most recent quarter. And pay sales rose 18% from a year ago, compared with only 9% increase for the core market of eBay / online auction business.
There are signs that growth in unit market is slowing even more.