What you need to know
- A report says that Apple Pay will account for 10% of global card transactions by 2025.
- Currently, Apple Pay accounts for around 5%.
- The digital payments sector is worth around $1 trillion in revenue around the world.
A report states that Apple Pay will account for 10% of all global card transactions by 2025.
According to Quartz:
Apple Pay accounts for about 5% of global card transactions and is on pace to handle 1-in-10 such payments by 2025, according to recent trend data compiled by Bernstein, a research firm. "There are indeed plenty of reasons to worry that Apple may attempt to disrupt the payments ecosystem," Bernstein analysts, led by Harshita Rawat, wrote in a research note.
As iPhone sales plateau, the Cupertino-based company is leaning into its services division, which includes Apple Pay. The unit generated $12.7 billion in revenue in the last three months of 2019, a 17% increase from a year earlier. The company's payments ambitions have the benefit of a massive cash hoard, years of experience in card transactions, and a vast customer base consisting of hundreds of millions of iPhone users.
The news follows another recent report suggesting that by 2024, Apple Pay will account for 52% of all OEM transactions, that's payments made on devices using services like Apple Pay, as well as Samsung and Google's alternative.
This new report says that in a few years, Apple Pay will account for 10% of all global card transactions, not just OEM or contactless.
The report notes that the digital payment market is worth around $1 trillion in revenue and that Visa and MasterCard process more than $14 trillion of payments per year.
Like most card issuers, Apple takes a tiny percentage of each Apple Pay transaction, using it to boost its increasingly prominent services revenue. The report also notes that over the next four years, contactless payments in America are forecast to increase to $1.5 trillion.
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