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

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.

Related Roundup: Apple Pay

Top Rated Comments

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6 days ago at 02:45 am
100 percent of my credit card transactions are now done via Apple Pay on my Watch. Still have physical cards in my (increasingly small) ('https://bellroy.com/products/card-pocket/default/racing_green') wallet "just in case" but they are unused since long, long time.

Add to that things that were previously paid with coins (parking tickets, serving machines).

A very welcome change.
Rating: 10 Votes
6 days ago at 02:47 am
I wonder if there are any numbers out about fraud with Apple Pay. Since the merchant or rogue employees don't have any access to your actual card, fraud numbers should be reduced.
Rating: 7 Votes
6 days ago at 03:04 am
I understand the concern about monopolization and locking out competitors and banks. But I don’t care. There are no other company/government I want to give this responsibility to - Apples track record speaks for it self.
Rating: 7 Votes
6 days ago at 02:44 am
I wish you didn't need to be in the US to send or receive money from friends.
Apple needs to create a real PayPal competitor, because they su.. a...
Rating: 6 Votes
6 days ago at 03:20 am
Paypal blows, so great news. Maybe Apple can force Paypal to shape up. Competition is good.
Rating: 6 Votes
6 days ago at 03:04 am


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).
Rating: 5 Votes
6 days ago at 03:28 am


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 ('https://www.macrumors.com/2017/02/13/australian-banks-access-nfc/') 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.
Rating: 5 Votes
6 days ago at 03:30 am
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.
Rating: 4 Votes
6 days ago at 04:07 am
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.
Rating: 3 Votes
6 days ago at 05:50 am
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.
Rating: 3 Votes

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