Business

In the near future, Apple Pay could grab 10% of digital payments worldwide

This Apple's division makes money by taking a part of each transaction made in a iPhone

Photo: Apple/Courtesy
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  • The immensity of users and fans of Apple products and services is already quite an advantage for the company to ride the global wave of digital payments;
  • As more users employ their credit and debit card data stored on the device, making digital payments more and more common in their daily lives, Apple also looks at this service as an increasingly promising business within the company.

Apple’s mobile wallet is attracting the attention of large payments players. According to data published by Quartz and collected by the research firm Bernstein, “Apple Pay accounts for about 5% of global card transactions and is on pace to handle 1-in-10 such payments by 2025″.

Apple Pay is part of Apple’s services division, and has generated $12.7 billion in revenue in 2019’s last quarter, with a 17% increase from a year before.

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The immensity of users and fans of Apple products and services is already quite an advantage for the company to ride the global wave of digital payments, which today moves $1 trillion in the world.

This Apple’s division makes money by taking a part of each transaction made in a iPhone. As more users employ their credit and debit card data stored on the device, making digital payments more and more common in their daily lives, Apple also looks at this service as an increasingly promising business within the company.

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According to Quartz, “academics, lawyers, and executives see Apple’s control over the iPhone NFC chip as a way to block competition and make its own wallet more popular”. The publication points out that Apple Pay’s app is pre-installed on iPhones, and that Apple has a tight control over the device with NFC technology. “That’s why Apple Pay is the only iPhone mobile wallet that can make NFC transactions. (Alipay and WeChat Pay, the enormously popular Chinese payment apps, use QR-codes. The optical codes are read through a phone’s camera and aren’t controlled by Apple.),” highlights Quartz.