PayPal Attacks Apple Pay Over Privacy After iOS 8, iPhone 6 Are Released

PayPal has virtually declared war on Apple right after the latter unveiled a new Internet payment system that would pose a direct threat to the former's business during the launching of its iPhone 6 series and the Apple Watch.

In a full-page ad in the New York Times, PayPal blasted Apple for its alleged privacy failures while touting its own system's security features.

"We the people want our money safer than our selfies. PayPal, protecting the people economy," the ad says.

PayPal, which is owned by eBay, cited the hacking of Apple's iCloud that caused the leakage of intimate, explicit photos of top celebrities including Jennifer Laurence and Rihanna.

PayPal's preemptive attack was apparently spurred when Apple did not include it as a payment platform partner, choosing rivals Stripe, Authorize and Chase Paymentech instead.

During its product launching, the giant tech company unveiled Apple Pay. "One-touch checkout, no card number entry, no need to type addresses, no card information shared with merchant," Apple announced in its press conference.

Basically, with Apple Pay, the iPhone 6 and the new Apple Watch become credit cards, with transactions approved using fingerprint recognition.

The system uses Near Field Communications (NFC), a new technology that allows smartphones and other devices to wirelessly communicate with each other and other devices as well using a touchless, short distance connection.

NFC allows mobile phones to "talk" to the computers in stores for the quick payments of items bought.

With 50 million users, PayPal is obviously concerned that Apple, with its massive global resources and prestigious brand, could grab a huge chunk of its e-payment market at a time when business is booming.

The New York Times advertisement was actually the third offensive launched by PayPal against Apple, indicating the depth of its concern despite the fact that Apple Pay will only be available on iPhone 6 and Apple Watch presumably next year when Apple releases its next generation technology.

"Nobody can dispute Apple's strong track record, but payments is a difficult area. It's much more difficult to do payments than to keep a live stream working," said PayPal Director of Communication Rob Skinner as reported by TechRadar.

Skinner was obviously alluding to the broadcasting glitches during Apple's launching of its iPhone 6 series on the Internet.

Right after the Apple announcement of its new products, Bill Ready, CEO of PayPal subsidiary Braintree, belittled Apple's threat, saying PayPal will not suffer if merchants like Uber choose Apple Pay.

Apple has not responded yet to PayPal's tirade.

The first reaction to PayPal's New York Times ad came from someone who has been involved with PayPal, venture capitalist Keith Rabois.

In a Twitter tirade, Rabois slammed PayPal for its scare tactics, describing its advertisement as the "dumbest ad ever."

"PayPal ad campaign: We will terrify those users into staying with us for another decade," he tweeted.

He also said Apple is a brand that Americans like whereas PayPal is one that they do not.

Moreover, PayPal and its parent company eBay also have their own privacy issues to deal with. The vulnerabilities of PayPal's system were exposed earlier this year by a 17-year-old while eBay's network was compromised recently as well.