This May Be Why Paypal's Stock Continues To Fall - PayPal Holdings (NASDAQ:PYPL), Apple (NASDAQ:AAPL)

Shares of Paypal Holdings Inc PYPL lost more than one percent during Thursday's pre-market trading session, adding to Wednesday's 1.81 percent decline.
Apple Inc. AAPL announced on Wednesday that it is working on a peer to peer payment service.
Apple is in talks with banks over the new service which could compete against Paypal's already existing peer to peer payment service.

Paypal has historically benefited from its dominant market position – with

some data pointing to as much as a 91 percent market share of the entire payment gateway segment. However, Paypal's dominance and lack of formidable competitors may come to an end as an industry titan is eyeing a massive expansion into Paypal's territory. Shares of Paypal lost nearly two percent on Wednesday, and continued to decline during Thursday's pre-market trading session, after various media publications, such as

The New York Times

, announced Apple is working with banks to create a peer to peer service that allows iPhone owners to send each other money from their Apple Wallet. Apple has already made its

ambitions clear: the company wants to replace consumers' wallets with their service. Apple Pay was initially launched in October 2014 and expanded to include Passbook, an app that stores digital tickets and rebranded the product as Wallet. According to

Business Insider

, Apple has actually been "quietly" putting together a plan to kill Paypal since 2014 when the company began forging relationships with credit card providers. The publication cited a Baird Equity Research analyst who noted that Apple is "the most legitimate potential threat" to Paypal's strong position, especially with respect to the point of sale segment of mobile payments.

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