Apple Adds PayPal to App Store Payment Options

Jul 12, 2017

Apple has added a long-awaited payment feature to its digital services.

The iPhone maker will now allow customers to make purchases through its App Store, Apple Music, iBookstore, and iTunes with PayPal. Users need only to link their PayPal accounts to their Apple ID accounts to make payments through the services. PayPal access is available to customers in a host of countries, including the U.S., Mexico and Canada. Several European countries, including France and Germany, also have access to the service.

PayPal has long been one of the more popular digital-payment platforms, allowing users to create online accounts to place purchases across the Web. PayPal users link credit or debit cards to their accounts. When buying products online, users can opt to checkout with PayPal credentials instead of sharing their credit card numbers with the merchant. PayPal argues it adds a layer of security users wouldn't get by inputting credit card information.

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Apple's (aapl) decision to support PayPal (pypl) marks a stark departure for the company. Since the App Store's inception in 2008, Apple has maintained strict control over payment options, and has not allowed third-party payment services to be used to acquire its digital goods.

Now with this move, Apple is relinquishing some of that control. Instead of inputting credit card information or using the iPhone maker's mobile-payment service Apple Pay, customers can link their PayPal accounts and stay away from Apple's options. And once PayPal is selected as a payment method, it'll automatically be used on all future purchases, so users won't need to input their PayPal information with each transaction.

It's worth noting, though, that Apple isn't removing its existing payment options, so users can still opt to buy apps and music with a credit card, Apple Pay, or gift card.

Neither Apple nor PayPal announced the terms of the new arrangement. However, PayPal shareholders seem pleased: the digital payment company's shares are up nearly 4% as of this writing, and earlier on Wednesday hit a 52-week high of $56.99.

Update at 4:07 p.m. on 07/12/17 to add mention of access in the U.S. and other countries.

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