Apple Pay will be most likely responsible for 10% global card transactions by 2025 worth trillions of dollars a year and even rival PayPal for online payments.
The mobile wallet currently accounts for about 5 % of all global card transactions, according to research by market analysts Bernstein. “There are indeed plenty of reasons to worry that Apple may attempt to disrupt the payments ecosystem,” Bernstein analysts, led by Harshita Rawat, wrote in a research note.
“With a network of millions of iPhone users and the ability to use the wallet to pay online or in stores”, Bernstein says Apple is on track to dominate the market.
“Apple Pay generated $12.7 billion in revenue in the last three months of 2019, a 17% increase from a year earlier. And it’s one of the long-term competitive threats to PayPal”, Bernstein analysts wrote as well.
Visa and MasterCard handle more than $14 trillion in payments annually and as online and apps grow, people are using less cash and card more often. Bernstein, in a research note, suggests that Apple could even launch its own payment network in future to rival Visa and MasterCard, rather than work with them.