Topeka: eBay Inc's PayPal Is At Risk From Apple Inc. iPhone Payment System

eBay Inc's (NASDAQ: EBAY) dominance of online payments faces a major threat starting with the launch of iPhone 6, an analyst said Tuesday.

Topeka's Victor Anthony said PayPal's heyday as the big guy on the payments block could be nearing its end with Apple Inc.'s (NASDAQ: AAPL) plan to bundle payment technology in its long-awaited smartphones.

Anthony reiterated a Hold and $54 target on eBay.

Apple has reportedly signed deals with major credit card providers Visa Inc, Mastercard Inc and American Express Company, and the new phones are expected to come equipped with near-field communications chips that can connect with specialized credit card terminals.

PayPal, which generated $27 billion in transactions in 2013, generated controversy earlier this year when activist investor Carl Icahn pushed for its sale.

Icahn backed off after obtaining representation on eBay's board, but reports surfaced last month that the company is mulling the unit's sale.

In an effort to steal some of Apple's glory Tuesday, PayPal said Monday its service would soon begin accepting Bitcoin payments.

eBay traded recently at $54.57, up 0.6 percent.