eBay's (EBAY) PayPal Will Likely Have Another Competitor this Fall... Apple (AAPL) - Piper Jaffray
June 12, 2014 6:40 AM EDT
Piper Jaffray analyst Gene Munster weighed in on eBay (NASDAQ: EBAY) as he expects another competitive
entry coming soon. The analyst believes Apple's (NASDAQ: AAPL) iPhone 6 will have NFC, which could pave
the way for an Apple digital wallet offering.
"We believe that Apple, with its nearly 800m active iTunes accounts (as of April 2014), has a valuable asset
in terms of credit cards linked to its services," Munster said. That said, the analyst doesn't see an immediate
impact on eBay's PayPal. "However, while this brings a formidable competitor into the digital wallet space,
PayPal is already competing with a number of players including Google, Visa and MasterCard. In addition,
PayPal has the advantage of having already rolled out a product, which is now available in about 2m
locations, up from 250k last year. Apple will also have to build its retail or terminal partnerships from zero
today."
The firm maintained an Overweight rating and price target of $63.00
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