Apple Pay to rack up $686 billion in transactions within five years

  • Apple Pay to rack up $686 billion in transactions within five years

Apple Pay to rack up $686 billion in transactions within five years

According to the article, Apple Pay is on pace to account for 10% of all global card transactions; Apple Pay now accounts for 5% of global card transactions and that number will double by 2025.

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. That's a massive amount of money Apple will be able to take a growing slice of, since a portion of each Apple Pay transaction flows into Apple's coffers. This is mainly due to the increase in contactless payment demand and the increase in the number of active Apple Pay devices.

There is a lot at stake, the digital payments industry took an estimated trillion dollars in revenue worldwide a year ago (£770 billion), according to Bernstein. Juniper Research reports that by 2019, 100 million such devices have been sold, of which approximately 20 million have been used for contactless payments.

Apple Pay will account for 52% of OEM payment transactions.

Last year, Apple and Goldman Sachs released the Apple Card, which encourages cardholders to use Apple Pay by giving 2% cash back when users make a purchase on the card using Apple Pay, but only 1% if they use the physical card. App preinstalled on iPhone, and Apple has tight control over the NFC technology used for contactless payments. That's why Apple Pay is the only iPhone mobile wallet that can make NFC transactions. The reason was the rule that digital platforms agree to open your interface for the payment of services and applications: it concerns, including mobile payment systems Apple Pay, according to the publication Der Spiegel. Providing participants with access to this platform (for a fee) would help to align the positions of the players, according to legislators.

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.

In addition to in-store payments, Apple said it is also expanding to provide Apple Pay as a method of payment for public transit, having already launched in NY and Portland, and coming to Washington, D.C. and Los Angeles this year.

The Apple Card is a credit card linked to the Apple Pay wallet. While the technology company could, in theory, create its own network that runs outside of card systems, Bernstein argues that Apple still needs card networks, which are ubiquitous and reliable. At the moment PayPal is the market leader in electronic payments, but Apple and PayPal may eventually start competing for the same territory in the coming years.