Apple’s Bite of the Card Payment Systems
Meanwhile, Apple’s mobile wallet is taking a growing chunk of card payments around the world. As the service grows, it is becoming a greater challenge to rivals like PayPal and attracting the attention of competition watchdogs. At present, Apple Pay accounts for about 5% of global card transactions and will be able to handle one in ten such payments by 2025, according to recent trend data compiled by Bernstein, a research firm. Apple is looking to grow its services division, which includes Apple Pay. The unit generated US$12.7bn in the last three months of 2019, a 17% increase from a year earlier. As far as Apple Pay is concerned, the company has plenty of seed capital, years of experience in card transactions, and a vast customer base of iPhone users. The digital payments race is an immense opportunity, representing about $1 trillion in revenue around the world. Visa and MasterCard process more than $14 trillion of payments each year and are still growing as more transactions go online, flow through apps, and as consumers in many parts of the world use cashless often. Apple Pay makes money by taking a sliver of each transaction that runs through the app. Users can store their credit and debit cards on the wallet and use it to make contactless payments, supported by biometric security, through their phone’s near-field communication (NFC) tech. In the USA alone, contactless payments are forecast to increase to $1.5 trillion in 2024, up from $178 billion in 2019, according to Juniper Research.
The argument about competition is heating up. The other competitors, Alipay and WeChat Pay, the enormously popular Chinese payment apps, have to use QR-codes. The optical codes are read through a phone’s camera, while Apple Pay is already built into iPhones. Academics, lawyers, and executives see Apple’s control over the iPhone NFC chip as a way to block competition and make the Apple Pay wallet more popular. European officials are investigating Apple Pay again after German lawmakers passed a measure that would require tech companies to open up their payment services interfaces, and some big European banks, such as Deutsche Bank, have reportedly decided not to support Apple’s NFC interface. Apple argues that its NFC interface is designed to ensure security against hackers and to make the user experience as smooth as possible.
21 Comments
Leave a Comment
Become a member
Join the Ecommerce Forum South Africa and benefit from industry insights in South Africa and Africa.
Sign up to newsletter
Sign up to our newsletter and stay informed of the progress we are making at the Ecommerce Forum South Africa with government during Coronavirus.
Wow, great blog.Much thanks again. Great.
I need to to thank you for this excellent read!! I certainly enjoyed every little bit of it. I have you saved as a favorite to look at new things you postÖ
Excellent post. I was checking constantly this blogaand I am impressed! Extremely useful info specially the lastpart 🙂 I care for such info much. I was looking for thiscertain information for a long time. Thank you and best of luck.
I’m really enjoying the design and layout of your blog. It’s a very easy on the eyes whichmakes it much more enjoyable for me to come here and visit more often. Did youhire out a developer to create your theme? Great work!
provigil for sale modafinil – modafinil side effects
450 bushmaster ammo for sale[…]Wonderful story, reckoned we could combine a number of unrelated data, nevertheless truly worth taking a search, whoa did a single understand about Mid East has got more problerms too […]
It really is near close to impossible to encounter well-advised men or women on this niche, although you appear like you comprehend what exactly you’re preaching about! Thanks A Lot
I like it when people get together and share opinions. Great blog, continue the good work!
This is a very good tip especially to those fresh to the blogosphere. Brief but very accurate informationÖ Thanks for sharing this one. A must read post!
I love it when individuals get together and share views. Great blog, continue the good work.
I wanted to thank you for this good read!!I absolutely loved every little bit of it. I have you savedas a favorite to check out new stuff you post…
Great blog article.Really thank you!
Im grateful for the blog article.Much thanks again. Really Great.
Muchos Gracias for your article post.Thanks Again. Great.
Major thankies for the blog post.Really looking forward to read more. Will read on…
Really enjoyed this article.Really thank you! Cool.
I cannot thank you enough for the article.Thanks Again. Really Cool.
Helloo There. I found your blog using msn. This is an extremely well written article.I’ll make sure to bookmark it and return toread more of your useful info. Thanks for the post.I’ll definitely return.
A round of applause for your article.Really looking forward to read more. Will read on…
Fantastic post. Awesome.
A big thank you for your post.Really thank you! Want more.