Apple Pay is expected to reach $190 billion in transactions by 2022 and $304 billion by 2027, Morgan Stanley said in a recent memo. Morgan Stanley claims Apple Pay will close the gap with PayPal.
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Morgan Stanley said in the memo that PayPal expects $431 billion in transactions in 2022 and $579 billion in 2027. However, this does not include any offline transaction statistics. In theory, PayPal could add $257 billion in transactions by 2027.
Morgan Stanley also noted that while PayPal has the best consumer penetration to date, Apple Pay is a leader in mobile digital wallets. Its online usage has grown by 300 basis points since the summer of 2018, and there is still plenty of room for growth in mobile digital wallets.
Analysts expect the launch of the new Apple Card this summer to help increase awareness and adoption of Apple Pay. The card, which will be launched in conjunction with Goldman Sachs and Mastercard, will give users a 2 per cent cash back when they use Apple Pay.
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In addition, a win-win business partnership between Apple and Goldman could change the rewards structure of credit CARDS in the first two years to entice more cardholders to spend on Apple Pay and other Apple services, boosting overall service revenue. Apple’s actions, such as Apple Store rebates, App Store discounts, or new categories of rewards including meals, will significantly increase the number of cardholders.
Comment: Apple Pay pay has become mainstream in the international market, and while Apple Pay has clear prospects, it is not optimistic in China and India. The biggest increase so far is still with China and India. Before Apple Pay came into China, WeChat payment and alipay had been deeply engaged in the field of mobile payment for many years, and users had already established the habit of scanning qr code to Pay. As a result, it was not convenient for users to use Apple’s new payment method, which led to the failure of Apple Pay promotion in China. While Apple Pay is accepted in China, people are accustomed to using the latter two, unless Apple wants to roll out a payment discount model with Chinese characteristics.