From "Apple Pay Tops PayPal This Holiday Season. It’s Adding Users at a ‘Rapid’ Pace." posted Monday by Barron's:
The holidays have been merry for Apple Pay so far but less so for PayPal Holdings .
That’s the deduction Deutsche Bank analyst Bryan Keane made looking at Salesforce e-commerce spending data, which showed Apple Pay taking market share at an “extremely rapid pace.” So far for November, Apple ‘s mobile payment adoption was up 52% year-over-year globally and 59% year-over-year in the U.S. Meanwhile, PayPal ‘s growth in the same period has fallen 8% globally and 4% in the U.S.
"We continue to expect PayPal will face the steepest competition in the coming months and years from Apple Pay,” Keane said in his note on Tuesday.
But despite the growing shift toward Apple Pay, PayPal, one of the oldest fintech companies, remains the dominant payment type. PayPal makes up roughly 16% of all global e-commerce purchases compared with Apple Pay’s 5% share. In the U.S., PayPal makes up 15% of all U.S. purchases and Apple accounts for roughly 6%.
My take: So, Apple didn't quite "top" PayPal, did it? Still, a modest fee on a ton of transactions adds up over time.