PayPal was excluded from Apple's new payment platform, Apple Pay, because the payment platform partnered with Samsung during negotiations with Apple, Bank Innovation's Ian Kar reports.

Kar says former PayPal president David Marcus was against the Samsung partnership  for fear it would upset Apple  but was forced to go along with the agreement by eBay CEO John Donahoe.

eBay was PayPal's parent company at the time, but the two companies announced they would split permanently on Tuesday.

PayPal ultimately got integrated with Samsung's Galaxy S5 smartphone, which has a fingerprint scanner like Apple's Touch ID sensor on the iPhone. Users can tie their PayPal account to the fingerprint sensor on Samsung's phone and log in without using a password. However, the PayPal integration doesn't work in brick and mortar stores like Apple Pay will when it launches in October.

PayPal partnering with Apple's arch rival was a boon for payments company Stripe, which Apple partnered with to create Apple Pay's foundation.

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