Paypal has announced that it’s adding Apple Pay to its payment options for eCommerce-enabled SMBs. Specifically, SMBs who subscribe to PayPal’s Advanced Checkout feature can now offer their online customers the option of paying with Apple Pay. This joins other options such as Venmo and credit cards.

Backing up for context, PayPal offers two main options to SMBs that have eCommerce functionality on their sites or apps. The simpler of the two is Standard Checkout, which lets you accept payments via PayPal. In other words, the user must have a PayPal account from which they’re paying the SMB.

The other option is Advanced Checkout, which offers a wider range of options, such as credit cards, Venmo, PayPal Pay Later (its BNPL play)… and now Apple Pay. In this scenario, PayPal is operating as a payment gateway, akin to Stripe, offering several payment methods beyond PayPal itself.

Apple’s (Kind of) Rollout of Apple Pay Later

Optionality & Attractiveness

So what’s behind this move  By giving SMBs the tools to offer their customers more payment optionality, it boosts its own attractiveness as a gateway of choice. Meanwhile, Apple Pay continues to grow in prevalence, so not offering it could dampen sales for any eCommerce operation.

PayPal has realized this and quickly acted to add Apple Pay to the mix. Notably, Apple Pay recently launched Pay Later, as my colleague Charles Laughlin examined. There’s no sign of it joining this PayPal integration, especially since PayPal has its own “Pay Later” offering, but we’ll watch for signs.

It’s also notable that this isn’t the first sign of alliances between PayPal and Apple. As we examined last year, PayPal and Venmo (which PayPal owns) announced support for Apple’s new Tap to Pay functionality. This basically turns any iPhone into a point of sale, further democratizing SMB payments.

Venmo and Paypal Join Apple’s Tap-to-Pay Standard

SMB-Friendly

Back to the differences between Standard Checkout and Advanced Checkout, one question is why any SMB would opt for the former, given the latter’s advantages. Speaking as someone who uses both, the simple answer is Standard Checkout is easier to set up (SMB-friendly). All you need is a PayPal account.

Advanced Checkout on the other hand requires a PayPal business account, linked bank accounts (a place for funds to go when customers pay by credit card) and several steps to authenticate. For a certain swath of businesses, Standard Checkout is good enough, or it’s all they have time and ability to set up.

Advanced Checkout also has customizations that add a professional feel, such as receipts that contain the business’s logo. Both checkout tiers are free, while PayPal charges transaction fees for Advanced Checkout, given its role as a gateway. Expect more integrations as PayPal sharpens its competitive edge.