That's according to the research firm Bernstein, which, in a new research note, forecasts that Apple Pay will account for 10% of all card payments globally over the next five years. In addition, it claims that Apple will benefit the most from this growth.
Apple Pay makes money by charging a Commission on each transaction. This is mainly due to the increase in contactless payment demand and the increase in the number of active Apple Pay devices.
Apple was definitely smart to get into this contactless payments space, which is estimated to explode from a $178 billion market to a $1.5 trillion one in four years.
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. The iPhone maker's digital wallet, which users can link to their credit cards and the relatively new Apple Card, is now accounting for some 5% of all credit card transactions around the world.
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A report states that Apple Pay will account for 10% of all global card transactions by 2025. App preinstalled on iPhone, and Apple has tight control over the NFC technology used for contactless payments.
I don't really know when this started, but every time I make a run to Target these days I instinctively reach for my phone and complete my purchase at the register via Apple Pay. Apple claims that its policy is aimed at strengthening the security and to make user interaction with the system easier. European antitrust authorities have also raised concerns about Apple Pay, according to Reuters. A major driver of this is the expansion of Apple in key regions, including the Far East, China and its Europe Pay user base has been expanded through its Apple Card program. So now it will be impossible to carry out contactless data transmission between Apple devices and banking applicationsYami: should be used instead of more complex methods of transfer, such as reading a QR code. Apple Pay is one of these, a purchasing technology that uses traditional credit card mechanics in a modern way through utilizing powerful technology.
However, Apple Pay in the near future will not pose a threat to financial giants.
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. But Apple and PayPal could end up competing for the same territory in the coming years.