The split is a logical progression for PayPal, but eBay needs to show that it's also a smart decision for its core e-commerce business as Amazon lures away sellers.
Online auction giant could shed 10 percent of its workforce as it readies separation from its payments unit.
The new payment option is only available in the US and UK -- and only on Apple's website at this point.
What's the best way to protect yourself when shopping online? CNET's Sumi Das explains how to keep your credit card details away from criminals.
Jack Ma, co-founder of the Chinese e-commerce giant, is "very interested" in a deal between his Alipay and the new Apple Pay service. He's also bothered that in Chinese movies, the hero always dies.
Sharon Profis compares the security, ease of use and availability of some of the most popular mobile payment options.
The company's marketplace business continues to grow, despite a security breach in the spring, but it doesn't meet Wall Street's expectations for overall revenue.
PayPal co-founder Peter Thiel says it makes sense for eBay to split from the online payments service. Now, PayPal will need to focus on making its product more competitive in a mobile world.
"We want PayPal to be a presence however consumers want to pay," eBay CEO John Donahoe says.
The separation, brought up by activist investor Carl Icahn in January, will include new management teams for both businesses.