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Apple faces a mountain of challenges as it seeks to break into mobile payments with Apple Pay, a PayPal executive told CNBC on Thursday. "Payments is a tough ecosystem and you know, other players, other major consumer Internet companies have tried to enter in the space and have found, you know, limited success," said Bill Ready, CEO of Braintree, the parent company of mobile payment services providers PayPal and Venmo. What's interesting about Apple Pay, though, is that it only addresses the front-end of the payment process, Ready said. In other words, Apple Pay seeks to eliminate the plastic card, only to leave the rest of the mobile payments process up to the existing ecosystem. Still, retailers will likely have questions about things like security and fraud, two of the industry's biggest challenges, Ready said. "It's quite noteworthy that, you know, you had many of the largest retailers, most of the largest retailers, including Wal-Mart and Best Buy and others not part of the announcement," he said. An Apple spokesperson declined to comment.