Apple Was Going To Partner With PayPal On Apple Pay Until It Found Out PayPal Was Working With Samsung

Tim cook eddy cue iPhone 6APTim Cook and Eddy Cue, who’s in charge of Apple Pay.

PayPal was excluded from Apple’s new payment platform, Apple Pay, because the payment platform partnered with Samsung during negotiations with Apple, Bank Innovation’s Ian Kar reports.

Kar says former PayPal president David Marcus was against the Samsung partnership — for fear it would upset Apple — but was forced to go along with the agreement by eBay CEO John Donahoe.

eBay was PayPal’s parent company at the time, but the two companies announced they would split permanently on Tuesday.

PayPal ultimately got integrated with Samsung’s Galaxy S5 smartphone, which has a fingerprint scanner like Apple’s Touch ID sensor on the iPhone. Users can tie their PayPal account to the fingerprint sensor on Samsung’s phone and log in without using a password. However, the PayPal integration doesn’t work in brick and mortar stores like Apple Pay will when it launches in October.

PayPal partnering with Apple’s arch rival was a boon for payments company Stripe, which Apple partnered with to create Apple Pay’s foundation.

NOW WATCH: Tech Insider videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at