“There’s hope for the digital wallet. Despite 5 plus years of announcements from Google, Samsung, PayPal, Venmo, Square, Stripe, and Apple advancing the digital wallet theme, we believe less than 20% of global smartphone users actually use their phone as a wallet,” Gene Munster writes for Loup Ventures. “Eventually, we believe that number will rise to above 80%.”
“Apple has several advantages to brand the iPhone as the premium digital wallet given its ability to integrate payments into both mobile and desktop operating systems, use its brand to win accepting retailers and supporting banks, and reassure users that transactions are secure and private,” Munster writes. “Separately, Apple Pay is the only digital wallet with all five payment pillars: mobile, desktop, in-app, peer to peer, and point of sale.”
“Apple Pay is still too small to move the overall Services business (only 1-2% of Services revenue, growing at 40%). Today, Apple often markets the iPhone around the camera and its filters (portrait, studio, stage), notably with the ‘Shot on iPhone’ campaign. In the future, we expect the digital wallet to be a marketable iPhone feature. Adoption of Apple Pay is growing, and we believe 31% of iPhone users have used Apple Pay in the past year, compared to 25% a year ago,” Munster writes. “There are currently 24 countries where Apple Pay is accepted, soon be 25 with the addition of Germany later this year. We now estimate total Apple Pay user base at about 253 million (International at 215m, US at 38m).”
Read more in the full article here.
MacDailyNews Take: The pace of its rollout across the globe seems glacial, but Apple Pay is steadily cementing its dominance in the digital wallet market.
SEE ALSO:
CurrentC-backer CVS capitulates; to accept Apple Pay at 7,800 U.S. stores starting this fall – August 1, 2018
MCX’s CurrentC postpones further releases, stops accepting transactions on June 28th – June 7, 2016
CurrentC-backer Rite-Aid capitulates, to accept Apple Pay at 4,600 U.S. stores starting this Saturday – August 11, 2015
Note to CVS, Rite-Aid, Walmart: Apple Pay users spend big – November 21, 2014
Sorry, Walmart, CVS, Rite-Aid et al. — Apple Pay and NFC have already won – November 4, 2014
How to punish Walmart, CVS, Rite Aid, and others who block Apple Pay – October 29, 2014
Why Walmart, CVS and Rite-Aid really hate Apple Pay: They can’t track your buying habits – October 29, 2014
Retailers like CVS and Rite Aid that block Apple Pay are taking a big security risk – October 28, 2014
Boycott CVS and Rite Aid – October 27, 2014
Tim Cook blasts CVS, Rite Aid over Apple Pay blockade: ‘You only are relevant if your customers love you’ – October 28, 2014
Seeking personal data, Walmart, Best Buy, and others won’t let shoppers enjoy Apple Pay privacy – October 27, 2014
Bad business: CVS and Rite Aid antagonize their most well-heeled customers by blocking Apple Pay – October 27, 2014
CVS stores reportedly disabling NFC to shut down Apple Pay – October 25, 2014
[Thanks to MacDailyNews Reader “Fred Mertz” for the heads up.]