Apple Pay continues to grow as support from retailers and apps expands. So a new note Bernstein highlights this growth and indicates that Apple Pay is one of the biggest competitive threats to PayPal.
Details shared by researchers at Bernstein believe thatApple Pay currently represents around 5% of global card transactions. Thereby, at this rate of growth, Apple Pay could reach 10% of card payments worldwide by 2025.
Last year, Tim Cook sang the exploits of his contactless payment service saying that transaction volumeApple Pay increases 4 times faster than that of PayPal. Besides, the Apple CEO had said that the growth of new users ofApple Pay exceeds also that of new users of PayPal.
On the other hand, Bernstein analysts note that, theoretically, Apple could end up competing with Visa and MasterCard with its own payment network. However, this should not happen immediately.
There are a bunch of payment apps out there that have a lot of features, but Apple Pay Has Several Benefits. The application (Wallet) is preinstalled on the iPhone (and Apple Watch) and Apple tightly controls the NFC technology available on the smartphone which is used for contactless payments. This is why Apple Pay is the only mobile wallet for iPhone capable of performing NFC transactions. Other payment applications like Alipay and WeChat Pay use QR codes.
This move prompts regulators to take a closer look at Apple’s behavior. For example, European Union antitrust regulators have reportedly contacted other payments companies about Apple’s potential anti-competitive behavior.