The new payment system works as a digital credit or debit card offering to revolutionize mobile payment. Although Apple stands to gain from introducing the feature, there are also losers in the process. Analysts shared that payment providers like PayPal may be threatened with Apple Pay. 

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According to Bloomberg, Apple has introduced a financial system that has taken years for mobile-payment providers to offer. It will soon render wallets obsolete. Apple Pay centers on the idea that people can simply swipe their smartphones if they wish to pay for something. The Cupertino-based tech giant has already partnered with MasterCard Inc., American Express Co., and Visa Inc. to strengthen its mobile payment structure. 

Analysts see this scheme as a threat to PayPal. Investor's Business Daily noted eBay's stock to have gone down by as much as 2.5 percent last September 10. This happened one day following Apple's announcement. 

"If I were PayPal, I'd be worried," shared Forrester analyst Denee Carrington. "If the experience is better and the consumer perceives it as more secure, it poses a threat to PayPal," the analyst added. 

According to CNBC, bank executives considered the Apple Pay an "exciting move" and "exceptional customer experience." Terms of the deal include 15 cents to go to the iPhone maker for every $100 purchase. This will provide Apple an unprecedented opportunity to compete with Google as the internet giant does not get as much from its services. 

"It's somewhat surprising that Apple was able to negotiate something Google couldn't," Ingo Money chief product officer Dickson Chu said.

Chu also worked for Google Wallet while under Citigroup. He became part of PayPal as well. Apple may also be gaining support from other payment providers PayPal unit Braintree. According to the company, it is planning on offering Apple Pay support.

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