In a new format of paying brought in by the PayPal and Samsung Pay's partnership, consumers can now easily pay for their purchases using their individual PayPal credits. According to TechCrunch, users of the Samsung service can now divulge in in-app purchases online as well as buy directly using their PayPal credits through the Samsung Pay option. The partnership will also open opportunities for PayPal to reach millions of merchants worldwide.

Currently, the partnership is limited to U.S. customers only but is also expected to extend to other regions in the coming months. Compared to Apply Pay, Samsung Pay is still lagging behind, but opportunities are open for the new partnership.

TechCrunch also mentioned that the Apple service currently covers 36 percent of U.S. merchants, which explains its apparent superiority with Samsung.

Samsung's payment service is not yet largely recognized in the U.S., with most of its users using the Apple Pay service. Additionally, the competition against several other payment services made it hard to make a breakthrough. Once the service partnership is launched, it will first arrive for users with the Samsung Galaxy S8 and S8+.

Samsung and PayPal partnership

If you are still confused about how the partnership works, it's as simple as using your PayPal funds to pay for something via the Samsung Pay. So why not directly use PayPal? Some merchants and point-of sale purchases are not covered by PayPal, therefore users will still need to use Samsung's services to make purchases, but this is done through funds from your respective PayPal accounts.

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Apple Pay and PayPal partnership

For long-time users of the PayPal service, they can readily find the PayPal wallet inside the Samsung Pay service. Meanwhile, the partnership has yet to expand to other regions and it is not yet available outside the United States. Meanwhile, in a previous report by Cultofmac, it was revealed that Apple apparently cut its ties with PayPal after it was discovered that they had partnered with Samsung Pay. The news was not confirmed by Apple or PayPal, but the news report also said that eBay CEO John Donahoe was the one who pursued PayPal president David Marcus to partner with Samsung Pay.

Despite the reported conflict of interest, PayPal remains a prominent partner to Apple's Apple Pay, catering to in-app purchases and other merchants. PayPal on Samsung Pay will deliver the same services including several merchants within the United States.