Become a MacRumors Supporter for $25/year with no ads, private forums, and more!

Apple Pay Predicted to Account for Half of Mobile Wallet Users by 2020

MacRumors

macrumors bot
Original poster
Apr 12, 2001
51,027
12,565



Juniper Research today published new data outlining predictions for mobile payments processing over the next five years, placing Apple Pay at the forefront in the market ahead of rivals like Samsung and Google. The study looked at Apple Pay, Samsung Pay, Google Pay, and other "OEM Pay" (official equipment manufacturer) wallets.

In total, OEM Pay users will reach 450 million globally by 2020, and the researchers predict that Apple Pay will account for 1 in 2 of these OEM Pay users at that time. This growth will cause OEM Pay wallets to reach $300 billion in transactions by 2020, representing 15 percent of total contactless in-store transactions within two years.


While Juniper Research included newcomers to the mobile payments market like Fitbit Pay and Huawei Pay, they admit that these will likely not grow much and mobile wallets will continue to see leaders in Apple, Samsung, and Google.
Research author Nitin Bhas explained: "We believe that growth over the next 5 years will continue to be dominated by offerings from the major OEM players. Additionally, we now have the likes of Huawei Pay and Fitbit Pay launching in several markets; this is now included in Juniper's contactless forecasts".
Although mobile wallets will continue to grow, the research shared today also looked at the overall market of contactless payments, which will still see dominance from contactless card payments made using physical credit and debit cards. In-store contactless payments will reach $2 trillion by 2020, making up 15 percent of the total point of sale transactions and driven by "strong adoption" in Europe and countries in the Asia Pacific region.

Sooner than 2020, contactless payments are already set to exceed the $1 trillion mark for the first time in 2018, one year earlier than Juniper Research previously predicted. These NFC-enabled credit cards began growing in popularity in recent years, arriving at a time when major credit card companies are aiming to simplify the checkout process for customers using both physical and digital cards.

In another Apple Pay-related research note shared earlier this year, Loup Ventures estimated that Apple Pay was being used on 16 percent of active iPhones worldwide. Looking to the future, Loup Ventures also predicted that Apple's mobile wallet will "gain widespread adoption" over the next three to five years, despite a slow few years of growth that began when Apple Pay launched in 2014.

Article Link: Apple Pay Predicted to Account for Half of Mobile Wallet Users by 2020
 

keysofanxiety

macrumors G3
Nov 23, 2011
9,534
25,270
I was extremely skeptical of Apple Pay when it first came out. I'm in the UK with contactless so I thought it was mainly to benefit US consumers where they had to sign cheques and do all these antiquated payment methods we'd got rid of decades ago.

It's essentially the same process, I told myself - get out your card and put it on the reader. Get out your phone and put it on the reader. What's the difference?

Well one iPhone X 9 months later and I don't carry my wallet with me any more. There's something really great and secure about Apple Pay. It's nice to have everything in one place with digital receipts when you make payments. Also there's no payment limit like there are with debit cards, unless you decide to shop at Tesco and they have a 30 pound limit on all contactless payments.

Yeah, I'm definitely not surprised at this news. In fact I could definitely see it being much higher than 50% in a couple of years. Apple Pay slays.
 
Comment

recoil80

macrumors 68040
Jul 16, 2014
3,101
2,739
My bank doesn't support Apple Pay, so I'm using N26 and I have a debit card. That means I need to transfer money to my N26 account in order to have credit on my Apple pay card. I would be able to use Apple pay almost everywhere, at least here in northern Italy, but I use Apple Pay only if reaching out for my pocket is not convenient, otherwise I'd have to transfer money too often from my bank account to N26.
As soon as my bank will support Apple Pay I'll use my Watch to pay at every shop/restaurant as long as there is a compatible POS, which is true most of the time.
 
Comment

Macman8472

macrumors newbie
Nov 15, 2017
28
131
Yes, totally agree. Forgot my wallet once when I went to Tesco. But I had my iPhone with me. I use it whenever I can. Tesco does have this annoying £30 limit, Waitrose doesn't. Bought loads of things at £60 or £70, went through OK, so not sure what their limit is. Had a meal at Cafe Rouge, it came to £83, that went through OK as well. I wish all Retailers would not have a limit, especially if it's tied to your credit card. So what ever your credit card limit is, that's your limit in store, just like presenting a plastic card.
 
  • Like
Reactions: bottl3n3ck
Comment

EvilEvil

macrumors 65816
Jan 8, 2007
1,070
1,546
New York City
I used Apple Pay once on a vending machine and they charged me a 50 cent fee for using it. I never used Apple Pay again after that.
 
Comment

ChrisKe

macrumors newbie
May 29, 2018
17
11
Melbourne
Australia is very late to the game with Apple Pay with 3 of the big 4 banks not supporting it yet. Fortunately they are starting to see the light that this is the future and are “looking into it” as they see more and more transactions lost.

I have been using it for large and small transactions since about March and like others just leave my wallet at home now. The security of knowing that this technology can’t be skimmed is very reassuring.
 
  • Like
Reactions: Solomani
Comment

Saipher

Contributor
Oct 25, 2014
300
1,147
CA, USA
I wonder if Apple gets any money from the transaction fees businesses must pay to the big card companies, such as VISA and MasterCard, from each Apple Pay use. If that's the case, eventually it will be a major source of revenue for Apple.
 
Comment

craigmak

macrumors member
Jan 9, 2017
85
70
I used Apple Pay once on a vending machine and they charged me a 50 cent fee for using it. I never used Apple Pay again after that.
Was that just because it was apple pay or because it was a credit/debit transaction?

That's the equivalent of saying - there was an accident on this road yesterday so I'm never going that way again. I find apple pay easy and convenient, not a necessity but an amenity where I don't have to pull out my wallet or CC when needed.
 
Comment

EvilEvil

macrumors 65816
Jan 8, 2007
1,070
1,546
New York City
Was that just because it was apple pay or because it was a credit/debit transaction?

That's the equivalent of saying - there was an accident on this road yesterday so I'm never going that way again. I find apple pay easy and convenient, not a necessity but an amenity where I don't have to pull out my wallet or CC when needed.

Apple Pay. I'd rather avoid fees as much as possible for anything.
[doublepost=1532966880][/doublepost]
So that ‘50 cent vending machine fee’ swayed you from ever Considering Apple Pay again? Seems like you’re looking for a reason to dismiss Apple Pay altogether.

Same reason I stopped using BOA for my banking and switched to Schawb. Fees suck.
 
Comment

ElZeus

macrumors regular
May 26, 2008
239
128
Apple should license the MST tech from Samsung that they use for Samsung Pay. Samsung has said they are open to licensing it out. It's nice not really having to worry if the merchant accepts nfc payments... it just works.
 
Comment

Recognition

macrumors 6502a
Jun 27, 2013
596
672
Apple Pay. I'd rather avoid fees as much as possible for anything.

How did the vending machine know you were using Apple Pay?

Correct me if I’m wrong but... as far as the contactless reader is concerned, Apple Pay appears to be just another contactless card.

Most readers can’t distinguish between a contactless card or a mobile with nfc.
 
Comment

Hazmat401

macrumors 6502
Dec 29, 2017
299
725
Delaware County, Pa
Apple should license the MST tech from Samsung that they use for Samsung Pay. Samsung has said they are open to licensing it out. It's nice not really having to worry if the merchant accepts nfc payments... it just works.

I was just about to post this... 90% of my transactions is samsung pay. I'm having a hard time coming back to the iphone. I'm gonna see what the note 9 and the new iphone looks like but I might stay with samsung for another year
[doublepost=1532967511][/doublepost]
Apple should license the MST tech from Samsung that they use for Samsung Pay. Samsung has said they are open to licensing it out. It's nice not really having to worry if the merchant accepts nfc payments... it just works.

I was just about to post this... 90% of my transactions is samsung pay. I'm having a hard time coming back to the iphone. I'm gonna see what the note 9 and the new iphone looks like but I might stay with samsung for another year
 
  • Like
Reactions: jona2125 and mi7chy
Comment
Register on MacRumors! This sidebar will go away, and you'll see fewer ads.