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Apple’s (AAPL) settlement with European Union antitrust regulators, announced early on Thursday, could allow the iPhone maker to open its Near-Field-Communication technology to third-party payment providers in the U.S., such as PayPal (NASDAQ:PYPL).
Previously, only AAPL’s mobile wallet Apple Pay used to allow iPhone users to pay with their devices in stores and online.
The NFC technology enables tap-to-pay, so the settlement potentially could open the door for tap-with-Venmo, Mizuho analyst Dan Dolev wrote in a note to clients, noting there’s strong appetite among U.S. consumers for such a feature.
What’s more, he added, “we estimate that 40% of Venmo’s funding mix is via stored balance, which comes at zero transaction cost to PYPL and thus can lift transaction margin dollars.”
Last month, eBay said it will be adding PayPal’s (PYPL) Venmo as a payment option at checkout.