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Apple's Music Store Now Accepts PayPal

Posted on: Friday, 10 December 2004, 18:00 CST

NEW YORK -- Apple Computer Inc.'s online music store, iTunes, will now accept PayPal for purchases of music downloads, audiobooks and gift certificates.

PayPal, which is owned by eBay Inc., allows any individual or business with an email address to send and receive payments online.

Apple's vice president of applications, Eddy Cue, said Friday the deal with PayPal would bring more customers to iTunes. "PayPal already has millions of customers who are used to buying online," he said.

Apple hopes to get these customers to buy music at iTunes and in the process draw some new users to the online music store.

PayPal would receive fees from Apple for facilitating payments on iTunes, but the companies didn't disclose specific financial terms.

PayPal's general manager for merchant services, Todd Pearson, said the importance of the deal to PayPal was less about the specific economics of the pact and more about the value of working with a customer with the market importance of Apple.

ITunes Music Store purchases can be funded through PayPal starting Friday, allowing customers to pay using a credit card, bank account or stored account balance.

ITunes users weren't previously able to pay through bank and checking accounts, something they will now be able to do through PayPal, Cue said.

Shares of Apple, based in Cupertino, Calif., closed Friday at $65.15, up $1.16, or 1.8 percent. San Jose, Calif.-based eBay shares closed at $114.41, down $1.81, or 1.6 percent.

Source: Associated Press/AP Online

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