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

Apple Pay

In addition, it claims that Apple will benefit the most from this growth.

In the work of the payment system has seen signs of restriction of competition due to the fact that the Wallet app on the iPhone does not support other payment methods, thereby forcing users to pay using Apple Pay.

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. Earlier it was reported that the European Commission has launched an investigation against Apple Pay.

However, Apple Pay in the near future will not pose a threat to financial giants. According to forecasts from Juniper Research in the U.S. contactless payments market will grow to us $ 1.5 trillion in 2024, compared with 178 billion dollars in this thdo.

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.

Visa and MasterCard handle more than $14 trillion in payments annually and as online and apps grow, people are using less cash and card more often.

"There are indeed plenty of reasons to worry that Apple may attempt to disrupt the payments ecosystem", said Bernstein analyst, Harshita Rawat.

Apple makes money from its payment wallet by taking a tiny fraction of every transaction made using an iPhone, iPad or Apple Watch.

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. Apple Pay is one of these, a purchasing technology that uses traditional credit card mechanics in a modern way through utilizing powerful technology. Majority will be via contactless cards, and OEM payment transactions will account for about 22%.

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

There's no shortage of slick, feature-rich payment apps out there, but Apple Pay has several advantages.

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

Apple said that over 70% of merchants in the United States accept Apple Pay, while that number jumps to 99% in Australia. Given the number of card transactions that happen every day, this "little" piece they take clearly adds up to some real revenue for Apple.

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