Apple Pay to rack up $686 billion in transactions within five years

Apple Pay

Apple Pay to rack up $686 billion in transactions within five years

The European Commission is now investigating Apple's control over the iPhone's near field communication tech that allows the phone to make contactless payments - it is only available for use by Apple's own software.

In the work of the payment system has seen signs of restriction of competition due to the fact that the Wallet app on the iPhone does not support other payment methods, thereby forcing users to pay using Apple Pay.

By 2025 Apple Pay could account for 10% of global card transactions. Earlier it was reported that the European Commission has launched an investigation against Apple Pay. 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.

However, Apple Pay in the near future will not pose a threat to financial giants. Apple, in response to a request for comment from Business Insider, said that it prioritizes customer security and privacy and that allowing other payment processors to access NFC on its devices NFC could create a risk for users. Ambitions of the company in the area of payments based on years of experience of card transactions and an extensive client base, consisting of hundreds of millions of iPhone users.

Bernstein, in a research note, suggest that Apple could even launch its own payment network in future to rival Visa and MasterCard, rather than operate through them. Wrote a group of Bernstein analysts in their research note, led by analyst Harshita Rawat, "There are indeed plenty of reasons to worry that Apple may attempt to disrupt the payments ecosystem". Apple Pay is one of these, a purchasing technology that uses traditional credit card mechanics in a modern way through utilizing powerful technology.

Apple Pay to rack up $686 billion in transactions within five years

Not long ago, Apple reported that about 9 out of 10 contactless payments made through NFC terminals and Apple Pay have on.

Apple said that over 70% of merchants in the U.S. accept Apple Pay, while that number jumps to 99% in Australia.

Apple Pay is the Apple's mobile payment and virtual wallet service.

I don't really know when this started, but every time I make a run to Target these days I instinctively reach for my phone and complete my purchase at the register via Apple Pay.

Like most card issuers, Apple takes a tiny percentage of each Apple Pay transaction, using it to boost its increasingly prominent services revenue.

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