Bombarded with questions about whether Apple s mobile payments service threatens its business, PayPal has answered with a zinger: We the people want our money safer than our selfies.
The e-commerce company trumpeted that message in a full-page ad in Monday s New York Times, touting itself as the protector of the People Economy. Apple plunged into PayPal s turf last week by introducing Apple Pay, which will allow users to buy items in stores with just a wave of their iPhones, in addition to making purchases in apps. Shares of eBay, PayPal s parent company, were down as much as 3 percent the day Apple Pay was announced, as concerns mounted that Apple users will abandon PayPal. The news even inspired headlines as stark as: Will Apple Pay Kill Pay Pal?
But Apple s nude celebrity picture gaffe gave PayPal ammunition. Just more than a week before Apple unveiled new products and services at the Flint Center for the Performing Arts in Cupertino, hackers infiltrated the iCloud accounts of celebrities such as Jennifer Lawrence and Kate Upton, leaking their intimate photos to the world. If Apple can t keep steamy selfies under wraps, it shouldn t be trusted with precious financial information, PayPal suggested in its ad.
The comparison doesn t quite track – Apple Pay does not intersect with iCloud. Rather, the service uses near-field communication technology to send merchants a special number linked to users bank accounts. Users also register their fingerprints with the scanner on their iPhones to seal the deal. It remains to be seen how well Apple Pay s security features hold up in practice, but the selfie scandal probably won t spell doom the offering.
Of course, PayPal is not the only competitor smarting after Apple s marquee event. Shortly after the product launch, Samsung launched its own offensive, alleging that the iPhone 6 and 6 Plus, which feature larger screens, are little more than copies of the South Korean company s Galaxy Note line.
PayPal has taken aim at Apple after the launch of Apple Pay (Sean Gallup / Getty Images News / Getty Images).
