PayPal and Venmo will soon support Apple’s Tap to Pay on iPhones

Online payments company PayPal said it will soon add support for Apple’s Tap to Pay feature on iPhones, allowing merchants in the United States to accept contactless payments from customers using PayPal and Venmo apps.

”We’re very pleased to be working with Apple to enhance our offerings for our PayPal and Venmo merchants and consumers,” said PayPal’s President and CEO Dan Schulman in the company’s third quarter earnings report released yesterday.

Apple’s Tap to Pay on iPhone was first unveiled back in February, gaining support from Stripe at launch and Jack Dorsey’s Square in September. With the new expansion, merchants in the US will now be able to receive contactless payments from PayPal and Venmo users as well.

PayPal also announced that Apple Pay will soon be offered as a payment method in its unbranded checkout flows on merchant platforms such as the PayPal Commerce Platform. In addition, starting next year, customers in the US will be able to integrate their PayPal and Venmo cards into Apple Wallet and use them wherever Apple Pay is accepted.

For the third quarter of 2022 ended September 30, PayPal reported a net revenue of $6.85 billion with a 11% Y/Y growth, topping analysts’ average estimation of $6.82 billion, according to Refinitiv. 

The company expects to generate $7.38 billion during the fourth quarter, which is below analysts’ forecast of $7.74 billion. Following the news, the company’s shares fell 7% in premarket trading.