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Apple Pay Tops PayPal This Holiday Season. It’s Adding Users at a ‘Rapid’ Pace.

Holiday data show a growing shift toward Apple Pay.

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Bryan Thomas/Getty Images

The holidays have been merry for
Pay so far but less so for
PayPal Holdings.

That’s the deduction Deutsche Bank analyst Bryan Keane made looking at
e-commerce spending data, which showed
Pay (ticker: AAPL) taking market share at an “extremely rapid pace.” So far for November,
‘s mobile payment adoption was up 52% year-over-year globally and 59% year-over-year in the U.S. Meanwhile,
‘s (PYPL) growth in the same period has fallen 8% globally and 4% in the U.S.

“We continue to expect [
] will face the steepest competition in the
coming months and years from Apple Pay,” Keane said in his note on Tuesday.

Apple has been active in the finance space lately. In June, the tech giant announced it would be offering a buy now, pay later product called “Apple Pay Later.” The move came after it launched contactless payments earlier this year.

But despite the growing shift toward Apple Pay, PayPal, one of the oldest fintech companies, remains the dominant payment type. PayPal makes up roughly 16% of all global e-commerce purchases compared with Apple Pay’s 5% share. In the U.S., PayPal makes up 15% of all U.S. purchases and Apple accounts for roughly 6%.

PayPal didn’t immediately respond to Barron’s request for comment but in a previous instance the company said it doesn’t “comment on individual research notes.”

Apple didn’t immediately respond to our request for comment early on the day.

Competition is intensifying and PayPal’s market dominance—at least according to one market research service—may not last. in its report this month projected Apple Pay will be the most dominant player in North America by 2026.

Nonetheless, both Apple and PayPal stocks continue to be under pressure. Production delays at factories in China, worse-than-expected demand for the new iPhone 14, and investors moving away from tech stocks are contributing factors to Apple’s nearly 6% drop over the past month. PayPal is down 4.3% over the same period, also partly due to the distaste for tech stocks.

Write to Karishma Vanjani at


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