Comment: Apple Pay revenue is headed for a multi-billion dollar business

Apple Pay revenue has not received much attention until now. The most valuable role Apple Pay plays for the company from Cupertino is in addition to the locking of the ecosystem.

Once you’ve experienced the convenience of Apple’s payments in particular, and know the security you get from using Apple Pay on any device, this is not something you’ll want to give up. (Of course, there Pay Google and Samsung are Paying too much, but it still adds friction to the flat-forms of switching.)

But a news report, yesterday, prompted me to do some back-of-an-envelope calculations, and I believe that Apple’s mobile wallet service is rapidly headed toward becoming a multi-billion dollar revenue stream…

It was estimated yesterday that Apple Pay now represents a staggering 5% of all card transactions, and that the number could reach 10% by 2025.

The Financial Times reported in the run-up to launch that Apple is taking a 0.15% cut on all the Apple Pay transactions.

[Banks] are also pay money for the privilege of being involved: 15 cents of a $100 purchase will go to the iPhone maker, according to two people familiar with the terms of the agreement, which are not public. This is an unprecedented deal, giving Apple a share of the payments ‘ economics that rivals such as Google do not get for their services.

But a news report, yesterday, prompted me to do some back-of-an-envelope calculations, and I believe that Apple’s mobile wallet service is rapidly headed toward becoming a multi-billion dollar revenue stream…

The 2019 of the Federal Reserve Payments Study estimated the total value of US card transactions in 2018.

[Banks] are also pay money for the privilege of being involved: 15 cents of a $100 purchase will go to the iPhone maker, according to two people familiar with the terms of the agreement, which are not public. This is an unprecedented deal, giving Apple a share of the payments ‘ economics that rivals such as Google do not get for their services.

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