Investors Cheer News That Apple Has Added PayPal To App Store, iTunes, Apple Music

PayPal Holdings Inc PYPL shares rose more than 3.5 percent during Wednesday’s pre-market session as Apple Inc. AAPL announced a new partnership with PayPal.

Starting Wednesday, select Apple users will now be able to use PayPal as a form of payment in the App Store, iTunes Store, iBooks Store, and for Apple Music services. Thus, Apple is allowing one of its biggest competitor payment platforms to access its customer database.

While this new option is only available in select countries (Mexico, Canada, Germany, Netherlands and the UK), it's expected to be rolled out in the United States soon.

A Win-Win For PayPal And Apple?

In the past, Apple users needed to use a registered bank card or a gift card. Thus, Apple must have thought this system was an annoyance for some of its users. Now Apple users can just update their settings, and everything can be charged to their PayPal account.

With PayPal’s One Touch service, this should make it easier and quicker for Apple customers to make transactions from all of their devices and in Apple stores.

PayPal traded recently at $56.48, up 3.1 percent in the pre-market session.

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