People using Apple Pay soared 52% YoY in November while the use of PayPal and traditional payment methods sank. Currently PayPal remains ahead of Apple Pay with 16% vs. 5% of all e-commerce purchases, respectively. But, Apple Pay is growing fast while PayPal is going the other way.
Adam Levy for The Motley Fool:
While the number of Apple Pay users was soaring, usage of PayPal and regular credit cards declined in November. While both of those methods have much larger user bases than Apple Pay for online and in-store transactions, respectively, this result signals that users are dropping older payment methods in favor of Apple Pay.
Apple’s ability to make greater headway is currently limited due to Apple Pay remaining exclusive to Apple devices. But there’s lots of room for Apple to expand.
With the capability of running credit checks, making lending decisions, and servicing financial products in-house, Apple could become a full-fledged fintech company a la PayPal. With in-house capabilities, Apple can more easily expand its financial services globally without having to find and negotiate with local partners in every market it wants to enter. And the growing adoption of Apple Pay, as well as the expansion of the services offered in Apple’s digital wallet, pose significant threats to the leading player in the space.
MacDailyNews Take: In August, The Wall Street Journal reported that Apple Pay is becoming ubiquitous, by summer 2022 having been activated on 75% of iPhones. Over 90% of American retailers now accept Apple Pay which is also the top payment app for American teenagers, according to investment firm Piper Sandler.
See also: Apple deepens financial push with new high-yield Savings accounts – October 14, 2022
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