Apple Pay could represent 10% of all card transactions by 2025, the analysts believe

Apple Pay continues to grow as a support to retailers and to interior applications and the expansion. A new research note from Bernstein this week highlights that the growth, and notes that Apple Pay is one of the most important long-term competitive threats to PayPal.

As detailed by Quartz, Bernstein, researchers believe that Apple Pay currently accounts for about 5% of all card transactions. At its current growth rate, however, Apple Pay is on the right track to lock 10% of all card payments as early as 2025.

Apple is the continued growth in the payment space is the price of PayPal, analysts say. “Apple Pay is indeed one of the long-term competitive threats to PayPal,” Bernstein said in its research note.

The comparison with PayPal is one that Apple itself has started to do recently. Last year, Tim Cook touted that Apple Pay transaction volume is growing 4x as fast as PayPal, while Apple Pay’s new user growth is also outpacing PayPal.

The analysts of Bernstein also note that, theoretically, Apple could find itself in competition with the likes of Visa and MasterCard with its own payments network, it is unlikely to happen anytime soon.

Apple Pay will probably not pose a challenge to the card giants anytime soon. While the company’s technology could, in theory, create its own network that works outside of the card systems, Bernstein says that Apple still needs the card networks, which are ubiquitous and trusted. Visa and MasterCard, on the other hand, are accustomed to dealing with partners (traditionally important for the bank that issued the card) with the kind of scale that even Apple Pay could muster.

As detailed by Quartz, Bernstein, researchers believe that Apple Pay currently accounts for about 5% of all card transactions. At its current growth rate, however, Apple Pay is on the right track to lock 10% of all card payments as early as 2025.

In a separate report today, Juniper Research estimates that contactless payment transactions could reach $ 6 trillion globally by 2024, powered by Apple Pay:

Apple Pay will probably not pose a challenge to the card giants anytime soon. While the company’s technology could, in theory, create its own network that works outside of the card systems, Bernstein says that Apple still needs the card networks, which are ubiquitous and trusted. Visa and MasterCard, on the other hand, are accustomed to dealing with partners (traditionally important for the bank that issued the card) with the kind of scale that even Apple Pay could muster.

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