PayPal is gearing up to take advantage of the upcoming Digital Markets Act (DMA) in the EU, which will impact tech “gatekeepers” like Apple. The company hinted at its readiness to leverage the new regulation, particularly in the realm of offline payments, through a new consumer app for mobile users.
Key Takeaway
PayPal is preparing to introduce a new consumer app and explore offline payment options, positioning itself to leverage the opportunities presented by the DMA and potentially challenge Apple Pay’s dominance in the mobile payment market.
PayPal’s Response to the DMA
During its Q4 earnings call, PayPal’s CEO Alex Chriss acknowledged the potential impact of the DMA on the company’s operations. While emphasizing the existing partnership with Apple, Chriss indicated that PayPal is closely monitoring the situation and is poised to capitalize on the new opportunities presented by the DMA.
Focus on Offline Solutions
Chriss highlighted the growing demand from PayPal customers for an omnichannel and offline payment solution. He affirmed that PayPal is actively working on meeting this need, signaling the company’s commitment to delivering a seamless payment experience for customers, both online and offline.
Potential for Expansion
With the DMA set to enable third-party access to NFC technology and the ability for consumers to select third-party contactless payment apps, PayPal stands to benefit from Apple’s loosened rules. The company could potentially offer an alternative to Apple Pay, further expanding its presence in the mobile payment landscape.
