According to a Bernstein analyst report cited by Quartz, Apple Pay already accounts for 5% of global credit card transactions, which is pretty solid when you consider that the service is only five years old. That easily outpaces other mobile provider networks, such as Samsung Pay and Google Pay, and is starting to encroach on territory that PayPal has owned for many years.
That is an impressive rate of growth for Apple’s mobile payment system in fairly short period of time. Considering that the new Apple Card should only increase that growth, Apple’s continued rise as a mobile payment provider is all but assured. In fact, the same analyst predicts that Apple Pay will grow to 10% of all credit card payments by 2025.
That would be a significant chunk of the mobile payments market and an even more significant chunk of change in Apple’s pocket. Apple Pay brought in $12.7 billion between October and December of last year, so we are talking about a LOT of money on the table here.
Unfortunately for Apple, any large tech company making money these days is going to draw the attention of world governments. Evidently, the potential to grow to 10% of a market passes for a monopoly these days. That said, things move in cycles and I expect the recent regulatory storm to blow over eventually. However, I’m sure that both Apple and Google will have to defend their involvement in mobile payments before then and figure out a way to set the minds of would-be trust busters at ease.
As long as Apple can ride out the current regulatory environment, Apple Pay should have an extremely bright future. As for my own opinion, I can understand why it’s doing so well and growing fast. The combination of convenience and security is hard to beat if you own an iPhone or Apple Watch. Whether you scan your phone or Watch at an NFC reader at a store, shop in the App Store, or use it online, Apple Pay is just so easy to use and manage. That should keep new people signing upm scanning and paying as Apple moves toward a bigger piece of the mobile payments pie.