An enabling of the biometrics-backed mobile payment service Apple Pay for online payments threatens to take a bite out of PayPal's revenues, say analysts.Piper Jaffray analyst Gene Munster has said that PayPal will lose market share because he sees Apple Pay as a superior payment solution and labels it as a major threat.At Apple's WWDC developer conference last week, Apple announced Apple Pay for browser. Although Apple only mentioned desktop integration at the presentation, “its partners (e.g. Shopify) simultaneously announced Apple Pay's availability in Safari on iPhone, iPad and Mac.””We view this as the first concrete step into direct competition with PayPal, as Apple Pay will now be available on platforms amounting to 30+ percent of PayPal's TPV (Mac, iPad, and iPhone),” Munster wrote in a note.”We expect the proliferation of Apple Pay options on websites to decrease the friction involved with checking out and, over time, to take share from PayPal,” Munster highlighted.The analyst noted that unlike PayPal, Apple is not looking to directly monetize payments. The analyst said, “This competition will likely convert shoppers at similar, if not better, rates than PayPal in the long term and at similarly secure levels, but without burdening the financial system with fees designed to directly monetize the transaction.”

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