Apple Pay Could Account for 10 Percent of Global Card Transactions by 2025 and Even Rival PayPal

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Apple Pay could account for 10 percent of global card transactions by 2025 and pose a serious challenge to rivals like PayPal, according to recent trend data compiled by research firm Bernstein.


Drawing from the data, Quartz reports that Apple Pay currently accounts for about 5 percent of global transactions. If that growth trend continues, it may well become a long-term competitive threat to PayPal - and could even end up competing with Visa and Mastercard if it chose to set up its own payments network much further down the line.
Apple Pay probably won't pose a challenge to the card giants anytime soon. While the tech company could, in theory, create its own network that runs outside the card systems, Bernstein argues that Apple still needs the card networks, which are ubiquitous and trusted. Visa and MasterCard, meanwhile, are used to dealing with partners (traditionally large card-issuing banks) with the kind of scale that even Apple Pay could muster.

The same may not be true for other wallets. "Apple Pay is indeed one of the long-term competitive threats to PayPal," Bernstein analysts wrote. For now, PayPal has a commanding lead in the world of online checkouts, and also benefits from network effects that have been building up since the turn of the century. But Apple and PayPal could end up competing for the same turf in the coming years.
Apple's advantage over other digital payments includes its pre-installed Wallet app for iPhone and its tight control over the NFC technology contained within the device that can process contactless payments.

However, that tight control could cause headaches for Apple if it is perceived as a way to block competition. Apple argues that its policies are strictly for security purposes, but it has already run into difficulties in Australia, where big banks want access to the iPhone's NFC function for a competitive level playing field.

The company has also faced a backlash in in Germany, where a parliamentary committee recently passed an amendment to an anti-money laundering law that could force Apple to open up the NFC chip in iPhones to competing mobile payment providers.

In November 2019, the European Union's competition commissioner Margrethe Vestager acknowledged that her department has received "many concerns" over Apple Pay and potential anticompetitive issues.

Article Link: Apple Pay Could Account for 10 Percent of Global Card Transactions by 2025 and Even Rival PayPal
 
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gnasher729

macrumors P6
Nov 25, 2005
16,638
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I use my Apple Card on a daily basis..

Apple continues to add merchants that give 3% cash back - Uber, Walgreens, etc.

If Apple Card continues to be a success then they definitely can get to 10% of all transactions by 2025
This article isn't about Apple Card. It is about Apple Pay (where you use your iPhone or Apple Watch to pay with your Visa card).
 

xplora

macrumors member
Sep 23, 2010
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Hamilton, New Zealand
However, that tight control could cause headaches for Apple if it is perceived as a way to block competition. Apple argues that its policies are strictly for security purposes, but it has already run into difficulties in Australia, where big banks want access to the iPhone's NFC function for a competitive level playing field.
This is an out of date reference as it no longer applies, because 1, they were refused by their own government, and 2, at least two of the four banks involved have now added support for Apple Pay.
 

Nozuka

macrumors 68020
Jul 3, 2012
2,287
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Apple Pay works way more consistently than my contactless cards. These sometimes don't get recognized on the first try.
Not sure if it's just sending a stronger signal because it has its own power source or something... because it also works from a bigger distance. whatever it is, it makes a huge difference.
 

bigchrisfgb

macrumors 65816
Jan 24, 2010
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I use it for all my transactions and have done for years.
The only time I won’t use it is when it’s not available online/in app, or the merchant doesn’t take card/contactless. Here in the UK that is rare.
I’d love for them to release Apple Pay Cash here in the UK, as I prefer to not do money transfers with friends through my main bank account.

I think here in the UK, Apple Pay is becoming very popular, to the point that it’s one of the most used methods of payments.
I work in retail and I’d say that we are probably close to Apple Pay, and Google Pay surpassing cash payments. Cards payments as whole have surpassed cash payments where I work, although the majority of our customers are students and millennials.

I think it’s also worth noting that here in the UK, ordinary contactless payments are becoming a bit more restrictive where they are further limiting how many contactless transactions you can make before you are requested to use your chip and pin. Apple Pay is exempt from this rule as you are classed as having the card holders permission through Face ID, Touch ID, and pin.
I think this in time will push a few Apple Pay and Google Pay holdouts towards the feature.
 
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imnotarobot

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Aug 3, 2015
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I would argue a little with "Visa and MasterCard, meanwhile, are used to dealing with partners (traditionally large card-issuing banks) with the kind of scale that even Apple Pay could muster". If Apple as a whole wanted to it has the scaling ability no bank or even V/MC could touch in the long run. For now it doesn't want to as that's a lot of additional business complexity.

I would settle for putting PayPal out of business, but that would require Apple Pay be more cross platform.
 

himanshumodi

macrumors 6502
May 18, 2012
335
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India
Apple Pay is simply fantastic and personally flawless. It’s rare to find somewhere in the uk now that doesn’t accept contactless or have a minimum spending amount.
Tesco - while they do accept apple pay, for over £30 they require me to fish out my card from its depths!
 

azentropy

macrumors 68020
Jul 19, 2002
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Surprise
I just don't see it until the larger chains are added. In the past week I've bought stuff at Walmart, Frys Grocery (Kroger owned), and Home Depot and none of them support Apple Pay. I've also bought stuff from online from Chewy.com (pet supplies) and discounttire.com and neither of them support Apple Pay either.
 
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bigchrisfgb

macrumors 65816
Jan 24, 2010
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I just don't see it until the larger chains are added. In the past week I've bought stuff at Walmart, Frys Grocery (Kroger owned), and Home Depot and none of them support Apple Pay. I've also bought stuff from online from Chewy.com (pet supplies) and discounttire.com and neither of them support Apple Pay either.
That’s because the American companies are stupid enough to think they can take on Apple with their payment methods.
They all have to remember that they are 1 chain, and people shop at more than shop.
This is why the likes of Apple Pay and Google Pay will win. It’s why Visa and MasterCard have won, because they are accepted everywhere. Just look at the stick American Express gets because it has a few places where it’s not accepted.
Heck, PayPal has to be bought by eBay to become a big player.
Tesco here in the UK are the same with their payment method, however they aren’t stupid enough to not accept Apple and Google Pay.


Your banks over there stupid aswell. Many of them limit how many card transactions you can make on a debit before either paying for the transactions, or paying for the bank account. This has lead to people getting credit cards where you are not limited on how many transactions you can make.
Those banks are going to be screwed when the fin-tech challengers arrive, or at least going to be caught back peddling.
 
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sinsin07

macrumors 68040
Mar 28, 2009
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How have you added your drivers license to your phone?
Digital driver's license:
 
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jinnj

macrumors regular
Dec 9, 2011
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I’ve been using it more recently, it’s convenient and safer since the “card/number” is only active for 24 hours if I remember correctly.
The card is only usable between the business and your account. So if someone skimmed that transaction number they could only charge stuff from your account to the merchant's.
 

Morgenland

macrumors 6502a
May 28, 2009
698
670
Europe
I love using ApplePay and am glad that more and more vendors have gotten on board. I really hope Apple perseveres in protecting their "secure enclave". If every other business is given access to it, there's no security. If banks think Apple has a monopoly on it, let them switch over to Android.

Less secure, less customer friendly solutions are offered by insurers to Android based solutions (e.g. Google Pay) while Apple benefits from its inherently higher security. One can almost feel sorry for the Android users.
 
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