The Battle Begins – Apple, Facebook, and Google take on PayPal

There’s a storm brewing in Silicon Valley, and it’s centered around a race to become the new standard for sending and receiving payments online. The world is changing and I’m pretty sure we’re all going to look back on things like credit cards and say, “wow, remember when you had to use one of those to pay for something?”

While PayPal has long been the way to pay and get paid online, Apple, Facebook and Google are chipping away at the market, and they are each gaining momentum. Last week eBay announced that it was going to split the two companies so that PayPal can operate on its own. Here’s a look at what Apple, Facebook, and Google are doing to out-innovate PayPal in the space it helped to create.

Apple Pay


The newest entrant to the payment game is the one that probably who PayPal is the most afraid of, Apple. In September the company announced Apple Pay and officially threw their hat in the ring. Given that Apple already has over 800 million registered users this is a massive market to move away from PayPal.

Google-WalletYou might think that Google could just take this market and not look back but Google Wallet hasn’t been a runaway success. Google is the undisputed king of search but many of their forays into other spaces have not gone very smoothly.

“Google often jumps head-first into new projects, paddles around, and then decides whether it’s worth staying in,” said Michael Gartenberg, an analyst covering mobile for Gartner. “I don’t think Google would pull the plug on Google Wallet entirely, but they may be slowing down and regrouping.” (Source – CNET)

Of course the Android market is huge and this is where Google really has the opportunity to shine.



Over the last 24-hours hacked screenshots have surfaced showing friend-to-friend payments via Facebook messenger. Once this is released it will directly compete with PayPal, SquarePay and many others fighting in this subset of the online payment space. Facebook has 1.23 billion monthly active users which is not a bad head-start.

Just remember, these are still the early days, remember, it was not so long ago that a smartphone looked like this…


{ 5 comments… add one }

  • Louise October 6, 2014, 5:49 pm

    Hi Morgan, I LIKE that smartphone! I have still a legacy Nokia 6030 from 2007. It works well for text and calling, and the battery lasts forever!

    Paypal sent a link to its upcoming policy:
    effective November 18th. The provision that,
    “Items which you collect in person or arrange to be collected on your behalf, including items bought through In-Store Checkout at the retail point of sale”
    are not covered in Paypal’s protection is a heads-up to me, as far as using Paypal for in-store purchase. So I emailed Paypal support, and the answer was, “PayPal Purchase Protection only applies to physical goods that can be shipped and tracked. To learn more about this policy, click ‘Legal Agreements’ at the bottom of any PayPal page, and then click ‘PayPal User Agreement.’

    So, that’s a signal, buyer beware.

  • Anthony October 7, 2014, 3:28 am

    I’ve been using Square Register and so far I like it. Just signed up for Amazon’s service but havent used it yet.

  • Kevin Fink October 7, 2014, 6:15 pm

    Awesome post, Morgan. Will be interesting to see, for sure. I’m sure at some point we’ll look back on the days we used PayPal like it was crazy we ever did so…

    • Morgan October 9, 2014, 10:42 am

      Thanks @Kevin, the times sure are a changing!

  • Ertha October 10, 2014, 9:37 pm

    I have been using Google Pay for a year and i like it, however this competition give us more alternative and lessen the exploitation 🙂

    Nice post Morgan!


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