Soon 10% of all card transactions will go through Apple Pay

Apple Pay Could Account for 10 Percent of Global Card Transactions by 2025 and Even Rival PayPal

The European Commission is now investigating Apple's control over the iPhone's near field communication tech that allows the phone to make contactless payments - it is only available for use by Apple's own software. In the last three months of 2019, Apple's service unit Apple Pay created $12.7 billion in revenue, which is a 17% increase from the same period a year earlier.

According to research firm Bernstein, the share of Apple Pay accounts for about 5% of the world's card transactions, in 2025 the "Apple" of the payment system will provide 10% of global transactions and will be the main competitor to PayPal in the online payment market. European antitrust authorities have also raised concerns about Apple Pay, according to Reuters. Apple's growth trajectory in this space is actually so strong, according to Bernstein, that the company is starting to become "one of the long-term competitive threats to PayPal".

There is a lot at stake, the digital payments industry took an estimated trillion dollars in revenue worldwide previous year (£770 billion), according to Bernstein.

However, Apple Pay in the near future will not pose a threat to financial giants. Ambitions of the company in the area of payments based on years of experience of card transactions and an extensive client base, consisting of hundreds of millions of iPhone users. Wrote a group of Bernstein analysts in their research note, led by analyst Harshita Rawat, "There are indeed plenty of reasons to worry that Apple may attempt to disrupt the payments ecosystem".

The company has also launched a credit card linked to its wallet and the ability to send virtual cash payments to other Apple Pay users.

How does Apple make money from Apple Pay card transactions?

Launched in October 2014, Apple Pay allows iPhone and Apple Watch users to pay in stores with their devices using credit or debit cards registered on Apple Pay.

This new report says that in a few years, Apple Pay will account for 10% of all global card transactions, not just OEM or contactless. Given the number of card transactions that happen every day, this "little" piece they take clearly adds up to some real revenue for Apple.

As an avid Apple Pay user, I read with interest a recent Quartz article on the worldwide growth of this digital wallet.

Apple Pay is the Apple's mobile payment and virtual wallet service.

Apple Pay requires the Near Field Communication (NFC) antenna and Touch ID or Face ID on iPhone 6 and later to work.



Latest news

Latest Pharmacy News: UK confirms ninth case of coronavirus
The woman was transferred from Lewisham Hospital to a National Health Specialist (NHS) center at Guys and St Thomas' Hospital. She tweeted: "I'm feeling completely well but to be extra-cautious I'm cancelling my public engagements until 20th February".

Family desperate after British hiker Stephanie Simpson goes missing in New Zealand
Search and rescue teams scoured the rugged terrain with teams on the ground, dogs, helicopters and drones with thermal imagery. According to her Facebook account, she had been living in the Wanaka area since November and was working as a landscaper.

Josh Norman To Be Released By The Washington Redskins
The eight-year veteran had 40 total tackles, six passes defensed, an interception, a forced fumble and a sack in 12 games in 2019. Last year, former coach Jay Gruden said Norman's play had not risen to superstar status the team expected when they signed him.

Slowthai has apologised for his 'shameful actions' at the NME Awards
He continued , "katherine, you are a master at your craft and next time i'll take my seat and leave the comedy to you". Taylor Swift attends the NME Awards 2020 at O2 Academy Brixton on February 12, 2020 in London, England.

Major League Baseball announces rule changes, including 3-batter minimum
Major Leagues, but for the Costa Ricans who make them each ball is the result of hours of painstaking stitching by hand. Change to pitcher injuries: Pitchers on the injured list must sit for 15 days - up from the previous total of 10.

Other news