By 2025 Apple Pay Could Make up 10% of Global Transactions

The Apple Card is a credit card linked to the Apple Pay wallet. The mobile wallet currently accounts for about 5 per cent of all global card transactions according to research by market analysts Bernstein

The Apple Card is a credit card linked to the Apple Pay wallet. The mobile wallet currently accounts for about 5 per cent of all global card transactions according to research by market analysts Bernstein

Apple Pay could account for 10 percent of global card transactions by 2025 and pose a serious challenge to rivals like PayPal, according to recent trend data compiled by research firm Bernstein.

Apple told Business Insider that Apple Pay is used at a rate of 15 billion transactions per year. This is mainly due to the increase in contactless payment demand and the increase in the number of active Apple Pay devices.

Apple's advantage over other digital payments includes its pre-installed Wallet app for iPhone and its strict control over the NFC technology contained in the device that can process contactless payments.

While mobile payments are still struggling to gain traction in the U.S., more than 80% of consumers used mobile payments in China in 2018, according to research from Bain cited in a report by CNBC.

How does Apple make money from Apple Pay card transactions?

Apple Pay has been rolled out to a number of transport services including in London where you can pre-approve its use without having to authenticate with a pass code or FaceID

Apple Pay has also received criticism that by only allowing its devices' NFC technology to be used for Apple Pay, Apple is unfairly stifling competition. That's why Apple Pay is the only mobile wallet iPhone, which can conduct NFC transactions. Apple claims that its policy is aimed at strengthening the security and to make user interaction with the system easier.

Apple Pay use is growing around the world, offering Apple an alternative stream of revenue as sales of physical technology like the iPhone slowed globally during the a year ago.

In November past year German lawmakers approved a new law to combat money laundering, corresponding to the latest European Union regulations.

Apple faces competition in China from QR code-based mobile payment services from Chinese tech giants Alibaba and Tencent. Providing participants with access to this platform (for a fee) would help to align the positions of the players, according to legislators. Some will argue that it's about time since Apple Pay launched in 2014. 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". Apple Pay is one of these, a purchasing technology that uses traditional credit card mechanics in a modern way through utilizing powerful technology. Analysts at Bernstein believe that Apple still needs the support of the card payment system that people trust and that are quite common. 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.

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