Apple Pay Looks Hugely Successful by Ashraf Eassa of TMF.
Services, which includes “revenue from Digital Content and Services, AppleCare, Apple Pay, licensing and other services,” is Apple’s second-largest segment by revenue (behind the iPhone).
“Well over 1 billion” Apple Pay transactions occurred during the June quarter-- tripling the number of transactions that took place in the same period a year ago. “To put this tremendous growth in perspective, this past quarter we completed more total transactions than great companies like Square and more mobile transactions than PayPal ,” Apple CEO Tim Cook explained.
Please short SQ and PYPL.
“In the U.S., eBay is beginning to enable its sellers to accept Apple Pay and CVS Pharmacy and 7-Eleven will roll-out Apple Pay acceptance in locations nationwide this fall,” Cook explained.
Recalled PayPal was once belonged to eBay, and CVS refused to use ApplePay when it was first launched because it is part of the WMT consortium.
Per Cook, Apple Pay “is now live in 24 markets worldwide with over 4900 bank partners,” and the company is looking to bring Apple Pay to the German market "later this year.”
Cook called out transit as “another important area of growth” and told investors that "Apple Pay can be used with iPhone and Apple Watch to quickly and conveniently ride public transit in [12 metropolitan areas]
"Apple Pay Cash, our peer-to-peer payment service, is already serving millions of customers across the U.S. less than eight months following its launch,”
Although the Apple Pay opportunity is interesting because of the additional revenue it can bring to the table, it might also be a way to further lock users into the iOS ecosystem. If users become accustomed to using Apple Pay Cash to transfer money, it will increase the switching cost of moving away from the iPhone because users would need to adopt not only a new phone ecosystem but also a new payment platform. In this way, Apple Cash and other Services both diversify the company’s revenues and strengthen the company’s core iPhone business.
Wondering aloud whether manch had bought AAPL paymaster who dish out annual pay increment of 10-15%.