How Will PayPal's Market Share Be Impacted By Google Wallet And Apple Pay?

Google Inc GOOGL recently acquired Softcard, a venture backed by major carriers in the U.S. to support NFC-based mobile payments. With this acquisition Google’s digital payment platform, Google Play, will now be available pre-installed in all the Android devices sold by the major carriers including Verizon Communications Inc. VZ, T-Mobile US Inc TMUS and AT&T Inc. T.

Jag Bath, RetailMeNot.com Senior Vice President, was on CNBC recently to talk about the deal and how Google Wallet and Apple Inc.'s AAPL Apple Pay will impact the market share of eBay Inc's EBAY soon to be spun-off unit, PayPal.

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How Important Is This Deal For Google?

"So, it's a significant deal for Google, there's no doubt about it," Bath said. "Since Apple launched Apple Pay, they have distribution power with Apple Pay being pre-installed on all new iPhones and being part of the onboarding process for all new iPhones. So, Google needed to make a move in this space and inking this deal with the major carriers gets them to get Google Wallet pre-installed on all those new Android devices.

"So, it's pretty significant for them."

How PayPal’s Market Share Will Change As A Result of Google Wallet And Apple Pay?

"Yes, so PayPal are the third major player in the space," Bath replied. "They definitely have traction with retailers; they have pre-installed their own payment methods with retailers in brick-and-mortar stores. So, they are definitely a player in this space where the technology goes and where PayPal are trying to push it is where payment will actually happen automatically at the checkout. So, you don't necessarily have to take out your phone and touch the phone at the checkout."

He continued, 'They are a player in this space as well, Apple and Google are too and then there are other players who we are hearing more and more about. Samsung recently made an acquisition to enter this space as well and then there is a consortium of retailers led by Wal-Mart, who are also playing this space too."