Apple will only need 2-3% market penetration to generate billions in revenue from the Apple Card. Not bad, especially when you consider that Apple receives an estimated 1% fee for EVERY transaction made using its Apple Card. And Apple Card, which got off to a slower start, has the potential to take over as Apple’s #1 fintech product by 2023, generating the company billions in revenue. “While Apple has portrayed these digital services as complementary to its mobile hardware platforms, we believe future scaling out of these services globally coupled with increasing depth and sophistication of them could position Apple as an emerging contender in the fintech space,” Sankar writes.Īpple Pay, by 2023, with growth potential in Europe and elsewhere, will enjoy 18% compound annual growth. Sanker points out that Apple’s Apple Pay and Apple Card have posted 100% year and year growth which is extremely impressive given the competition in the fintech niche. Krish Sankar, lead analyst at Cowen, described Apple Pay and Apple Card as a “fast-growing” and often “underrated” part of Apple’s overall business. Apple Pay and Apple Card have the potential to be one of Apple’s biggest earners in 2021 and beyond. But they shouldn’t be, according to Investment bank Cowen. Apple Pay & Apple Card Are Apple’s Next BILLION Dollar BusinessĪpple Pay and Apple Card are often overlooked when examining Apple’s business model. Again, Apple Pay does make Apple money, but it is no way near the same amount as it does from its iPhone and iPad business. With this figure in mind, Apple Pay users would have to spend $451 billion for Apple to make even close to 1% of its total quarterly profits. But for a company of Apple’s size, the revenue generated from Apple Pay, while certainly helpful, is a drop in the ocean compared to the revenue generated from its iPhone or AirPods business.Īpple makes around 15 cents per every $100 spent via Apple Pay. How much does Apple make from Apple Pay? For you and me, the amount of money Apple makes from Apple Pay is a lot. According to a report from Bloomberg, Apple receives a fee for every Apple Pay transaction, which means the company will get a share of the more than $40 billion bucks generated each year from credit card transactions. Innovation is one thing, but the advent of Apple Pay stands to net the company billions of dollars in revenue too. With over 200 million credit card transitions a day in the US alone, Cook said the payment transaction area was ripe for Apple’s innovation. It’s no wonder that people have dreamed of replacing these for years. Speaking about a credit card’s drawbacks Cook said, “We’re totally reliant on the exposed numbers and the security codes that all of us know aren’t secure. When Tim Cook introduced Apple Pay in 2014 he stated that most people use credit cards, but added: “ fairly antiquated payment process” that is almost 50 years old. With newer iPhones with Face ID, users will simply scan their face to authenticate a purchase
With it, users can simply place their iPhone up to a contactless card terminal and press their finger to their iPhone’s Touch ID to authenticate for their purchase. What Is Apple Pay?Īpple Pay is Apple’s contactless payment technology. The benefit of Apple Pay is that you can store multiple cards (debit and credit), as well as coupons, vouchers, and plane and train tickets, on your iPhone and Apple Watch and then simply use your iPhone or Apple Watch, rather than a physical card or ticket, to pay for things (or board a plane).Īs Apple Pay turns six this year, we take a look at everything you need to know to get started with Apple’s mobile payment solution. Apple was one of the leaders in the field, introducing Apple Pay in 2014.Īpple Pay is a payment platform that allows you to make payments from ALL your bank accounts without having to carry cards or cash. That’s why everyone from Google to Samsung to Apple has gotten in on the mobile payments game. And that number is expected to increase from here on out until a majority of people pay for items with their mobile phones by the middle of the next decade.
used a mobile payment method – that’s 20% of the population.
Do you still use cash? What about a physical credit or debit card? Right now you’re still in the majority, but that’s changing fast.
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