Using PayPal and Apple Pay together is a common question for consumers looking to streamline their digital wallets. The short answer is that you cannot use PayPal directly within the Apple Pay ecosystem to make contactless payments with your iPhone or Apple Watch. However, the relationship between the two services is more collaborative than competitive, as they often intersect when shopping online or within specific apps.
The Fundamental Difference Between Apple Pay and PayPal
Apple Pay functions primarily as a digital wallet and payment network that leverages Near Field Communication (NFC) technology. It stores your credit and debit card information, allowing you to make secure, tap-to-pay transactions in physical stores and within apps that support the Apple Pay SDK. PayPal, on the other hand, is a dedicated payment platform and processor that acts as a middleman between your bank and the merchant. Its core function is to fund and facilitate transactions through its own balance, bank transfers, or linked cards, rather than passing through your card’s native chip technology.
Why You Can't Use PayPal at the Register
When you hold your phone near a contactless payment terminal, the device is communicating with the card information stored in the Secure Element chip via Apple Pay. Because PayPal does not issue a traditional card number that can be embedded into this chip for contactless use, the terminal does not recognize PayPal as a valid payment method in that context. The transaction requires the specific cryptographic handshake that occurs between the phone and the terminal, which PayPal currently does not participate in for in-person payments.
Using PayPal with Apple Devices Online
While you cannot use PayPal for contactless in-store payments via Apple Pay, the integration is seamless when shopping on your iPhone, iPad, or Mac. Many online retailers, including major platforms like eBay and Walmart, provide a "Pay with PayPal" button at checkout. Selecting this option redirects you to the PayPal login screen, where you can authenticate the purchase using your PayPal balance or linked funding sources. In this scenario, Apple Pay simply provides the secure browser environment (Safari) that facilitates the PayPal login process.
PayPal Cash and the Apple Wallet App
A significant point of overlap exists with PayPal Cash, which is the balance held in your PayPal account. Users can transfer PayPal Cash to the Apple Cash wallet, which is the peer-to-peer payment service built into the Wallet app. Once the funds are moved to Apple Cash, you can use that balance to make Apple Pay transactions. This process essentially converts your PayPal money into a format that the iPhone’s NFC chip can utilize, bridging the gap between the two services.
Sending Money to Friends
For peer-to-peer transactions, Apple Pay and PayPal serve similar functions but through different interfaces. You can send money to friends using the Messages app with Apple Cash if it’s funded. Alternatively, you can send PayPal money to a friend's email or phone number directly. While you cannot pay a contact through Apple Pay using your PayPal balance, you can use PayPal to fund the Apple Cash account, allowing the money to circulate between the two ecosystems indirectly.
Workarounds and Future Possibilities
Currently, the most reliable workaround for using PayPal funds at a register is to transfer the cash to a physical debit card. Some financial institutions offer reloadable cards that you can fund with PayPal balance, which can then be added to Apple Pay. Regarding the future, Apple and PayPal have a history of partnership, so functionality may expand. However, as of now, the technical limitations of NFC and payment processing networks keep the in-store capabilities of these two services separate, maintaining distinct roles in the digital payment landscape.
