As digital wallets become integral to daily transactions, two brands take center stage in the discussion: PayPal and Apple Pay. Their impact, as well as the increasing competition they share, is remaking the way people spend and invest.

PayPal vs. Apple Pay in the Online Betting Industry

With the increasing popularity of online sports gambling and casino gaming all over the globe, payment systems are competing to cater to the needs of the fast-growing industry. For users, instant deposits, rapid withdrawals and robust security are a matter of priority. Both Apple Pay and PayPal are in broad use, yet in online gaming and betting, nuances do matter and can dramatically affect the experience of a user.

PayPal has long been among the most reliable and widely available of the online gambling payment alternatives, with a proven record of bookmakers accepting PayPal deposits and providing trust and security. PayPal accepts deposits and withdrawals at most of the major sportsbooks and casinos and its stand-alone platform design also renders it very flexible to a wide variety of operators.

Apple Pay, however, is unmatched in speed and convenience, particularly to users who are heavily immersed in the Apple ecosystem. Even with Face ID or Touch ID verification, payments take almost zero time, though Apple Pay is usually only employed to deposit funds and not to pay out winnings. Further, Apple Pay is currently not available at as many online sportsbooks and casinos as PayPal.

Eventually, however, PayPal remains in front in regards to flexibility and site compatibility, but Apple Pay is not far behind. This war of supremacy in the payment space is far from over.

The Digital Wallet Competition Heats Up

The payments ecosystem has been radically transformed over the past ten years, driven by users’ need for speed, convenience, and security. Digital wallets such as PayPal and Apple Pay lie at the center of these endeavors, supplanting cards and cash among millions of users. Competition between these two behemoths is heating up as both compete to capture customer loyalty in a rapidly cashless economy.

Apple Pay gains from being embedded in every iPhone and thereby having a huge installed base of users. This hardware-software synergy is used to deliver a frictionless and trusted experience by Apple. It is perfect for everyday use, in-store payments, and indeed public transport in some cities.

PayPal is still expanding from its roots as a subsidiary of eBay to a full-service digital payments platform. Through offerings such as PayPal Credit and its commercial tools to businesses, it supports a broader set of use cases than just consumer payments. It also provides greater flexibility in operating systems, browsers, and platforms, and is a favorite with Android users and those outside of the Apple ecosystem.

Competition is intensifying because the digital wallet space is expected to expand exponentially over the next five years. Because users need faster and more secure means of payment—both on the web and in applications, as well as in the gaming and gambling space—so the stakes couldn’t be higher.

Investor Insights in the Fintech Industry

Investors closely monitor this digital wallet war not only because of what it means for consumers, but also because of the long-term upside in the fintech space overall. Both Apple and PayPal are going all in on the next generation of digital transactions, just in very different ways.

PayPal’s diversification is its model. Being in both B2C and B2B markets creates multiple streams of revenue, from merchant fees and consumer transactions to interest on deposited funds. It continues to add to its offerings via strategic acquisitions, including what it did to acquire Honey, Xoom and iZettle in the past. These acquisitions, which were diverse in nature, demonstrate that PayPal is willing to diversify and adjust.

Apple Pay, which is limited to the Apple ecosystem, is the tip of a larger strategy that seeks to render iOS devices indispensable to daily life. By integrating financial products into the iPhone experience, Apple guarantees high engagement and retention levels. While Apple Pay itself may not earn as much direct revenue as PayPal, it generates value through keeping users locked in to the ecosystem, an equally effective strategy from a long-term growth perspective.

When you look at the two from an investment standpoint, think about the fact that PayPal and Apple Pay have cleverly come up with different approaches to turn a profit, adding value, while offering a very similar service. Both companies share distinct benefits and both of them stand to be relevant long-term.

What This Implies Moving Forward

Paypal and Apple Pay’s competition marks a larger shift in the way we spend and manage money. While consumers move further away from having to touch physical money and cards, the use of digital wallets will be determined by convenience, user acceptance, and innovation. Competition will compel both platforms to offer improved services that benefit users from all walks of life, from college students to professionals and retirees in between.

One of the main areas of expansion is in foreign markets. PayPal has a foothold in more than 200 countries and accepts various forms of currency, placing it ahead in global trade. Apple Pay is growing, yet it is limited by geographical factors and governmental regulations. However, both platforms are setting themselves up to be global players in the fintech space in the future. The sports and gambling industries will be a hotly contested space. With expanding legal betting in the United States and beyond, the payment method that most successfully combines security, speed, and accessibility will be favored by operators and consumers alike. The site that most successfully facilitates the easy management and transport of funds for recreational purposes, such as betting on your favorite sports team, will grab more of that high-growth market share.