Use of Apple Pay is increasing worldwide, offering Apple an alternative source of income as sales of physical technology such as the iPhone have slowed worldwide over the past year.
Payments made with Apple Pay currently account for 5% of global card transactions, and the mobile payment system is expected to account for 10% of global card transactions by 2025, Bernstein researchers in a Quartz report,
Apple Pay is part of the company's service revenue Record high for the company of $ 12.7 billion This quarter, Apple had record sales of $ 91.8 billion.
This revenue could give Apple a boost as global iPhone sales decline and compete with companies like Huawei that offer cheaper options to consumers, especially in emerging markets like China and India.
Apple Pay was launched in October 2014 and enables iPhone and Apple Watch users to pay in-store with their devices using Apple Pay-registered credit or debit cards. Apple also offers Apple Pay on its devices to pay for online transactions. Apple makes money with the mobile payment service by charging a small fee for every transaction.
Apple told Business Insider that Apple Pay is being used at a rate of 15 billion transactions a year.
Last year, Apple and Goldman Sachs released the Apple Card, which encourages cardholders to use Apple Pay by returning 2% cash when shopping on the card with Apple Pay, but only 1% when they do the physical Use card.
Apple said that over 70% of retailers in the US accept Apple Pay, while that number in Australia increases to 99%.
According to Apple, Apple Pay is also offered as a payment method for public transport. Apple Pay has been launched in New York and Portland and is coming to Washington, DC and Los Angeles this year.
While mobile payment is still a problem in the U.S., more than 80% of consumers used mobile payment in China in 2018, according to research by Bain in a report from CNBC.
Apple faces competition in China from QR code-based mobile payment services from Chinese technology giants Alibaba and Tencent.
Apple Pay has also been criticized for unfairly blocking competition by only allowing its devices' NFC technology to be used for Apple Pay. European antitrust authorities have also raised concerns about Apple Pay. according to Reuters, Apple responded to a request from Business Insider to prioritize the security and privacy of its customers, and to allow other payment processors to access NFC on its devices, could pose a risk to users.
Bernstein's latest Apple Pay projection is undoubtedly good news for Apple as it is set to define the next decade of its business.