Despite competition from Google, Samsung, PayPal, Venmo, Square, Stripe and other wallet providers, one research analyst expects Apple to benefit greatly from this growth trend, reports MediaPost, which added “Apple has several advantages to brand the iPhone as the premium digital wallet,” Gene Munster, the research analyst turned venture capitalist writes in the new report.
The MediaPost post added that among its assets, “Apple is in a unique position to integrate payments into both mobile and desktop operating systems, as well as win over retailers, banks and security-sensitive consumers.
““Apple Pay is the only digital wallet with all five payment pillars: mobile, desktop, in-app, peer to peer and point of sale,” Munster notes. Over the past year, 31% of iPhone owners have used Apple Pay — up from 25% a year earlier.
“Still, Apple Pay currently represents no more than 2% of Apple’s Services business, by Munster’s estimation.
“During its fiscal third quarter, Apple’s services business — which also includes the App Store, iTunes, Apple Care and its cloud services — generated $9.55 billion in revenue. That means Apple Pay put an estimated $200 million into Apple’s coffers during the period.
“Munster estimates Apple Pay now has 252 million+ users, which equates to 31% of the iPhone’s active user base. Going forward, he expects Apple to increasingly market the iPhone as an alternative to wallets and purses.”