Mizuho: After Apple is forced to open NFC, PayPal may profit from it

RBC Capital Markets analyst Dan Dolev believes that Apple's opening of its Near Field Communication (NFC) technology to third-party payment providers in the United States could open the door for PayPal's Venmo to tap into touch payments. He pointed out that American consumers have a strong interest in this feature. Earlier on Thursday, Apple announced a settlement with the European Union's antitrust regulators, promising to open NFC to third-party payment providers in the United States, such as PayPal. Previously, Apple only allowed iPhone users to use Apple's mobile wallet Apple Pay to make payments in stores and online. In addition, Dan added, "We estimate that 40% of Venmo's funding portfolio is achieved through stored balances, which is zero transaction cost for PayPal, thus can increase transaction margins." Last month, eBay announced that it would add PayPal's Venmo as a payment option at checkout. On Thursday, PayPal rose 1.85%, while Apple fell 2.32%