According to the research report, by 2024, Apple's global Apple Pay transactions will reach $686 billion.
Our PaymentsInsights data shows growth of the use of universal wallets like Apple Pay and Chase Pay as more consumers get used to the idea of a mobile wallet and, equally important, the increase in merchant acceptance. Apple makes its money by taking a little piece of the transaction fee applied to every card transaction.
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.
While mobile payments are still struggling to gain traction in the United States, more than 80% of consumers used mobile payments in China in 2018, according to research from Bain cited in a report by CNBC. Bernstein claims that Apple is on track to manage 10% of global transactions by 2025.
Not long ago, Apple reported that about 9 out of 10 contactless payments made through NFC terminals and Apple Pay have on.
A bet Apple made in 2014 appears to be paying off as the iPhone company looks to define its next decade
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.
Apple Pay requires the Near Field Communication (NFC) antenna and Touch ID or Face ID on iPhone 6 and later to work. Indeed, according to analysts past year, 43% of iPhone users around the world had activated Apple Pay. The Commission representatives said that the regulator is closely monitoring the development of mobile payment solutions, the behavior of the operators who work in the financial sector, including mobile payments. 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. Some of its offerings within that Services bucket are seeing more success than others at the moment, such as Apple Pay.
PayPal now leads the online payments market, but Bernstein said that Apple Pay represents a "long-term, competitive threat" to the service.
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. 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. But Apple and PayPal could end up competing for the same territory in the coming years.