A page from the PayPal website
A page from the PayPal website is seen in Singapore July 21, 2011. REUTERS/Tan Shung Sin Reuters

The financial company PayPal is all set to become a separate unit next year after splitting from eBay. Before the launch of Apple Pay, Apple was in talks with PayPal to partner the new system of payment. According to reports from the blog Bank Innovation, these talks were indeed happening and the financial service industry had also confirmed that PayPal was all set to be a preferred payment process for Apple Pay. However, there are reports stating, that PayPal was excluded from the list of partners for Apple Pay.

Apple Pay a unique payment system includes the Touch ID and dactylogram sensor. This feature allows the utilizer to pay with their device with any credit or debit card that the utilizer prefers without swiping it. Introduced by Apple, this system is due to be launched next year. As mentioned earlier, PayPal the potential financial partner has been excluded from the list of Apple's financial partners. Apple Pay is supported by big names in the financial industry. The company has partnered with major banks and credit card companies that include the Visa, American Express and the MasterCard.

Apple and PayPal had been in talks regarding Apple Pay at this time Apple was also getting into partnerships with banks and card networks for the new payment system. The ongoing talks between Apple and PayPal ended suddenly as Samsung and PayPal partnered. This partnership was entered into to certify the Galaxy S5 dactylogram scanner for the biometric authentication of payments. Galaxy S5 was Samsungs flagship device that has the dactylogram scanner. This device was unveiled last February this year.

Reports further indicated that the CEO of eBay, John Donahoe, was the reason behind the split between Apple and PayPal. He had forced PayPal into partnering with Samsung. The President of PayPal David Marcus was against the deal as believed that this deal could jeopardize PayPal's relationship and partnership with Apple. And right enough the deal between PayPal and Apple did not go through.