Apple Pay Trends for 2020

Apple Pay is known to continue growing as relevant support at the retailers out there while the application continues expanding at a rapid rate. A recent study report from Bernstein reveals the overall growth. The study report notes that Apple Pay serves to be one of the biggest threats on a long-term basis to PayPal.

As per another study report, the researchers of the study predict that Apple Pay is currently accounting for around 5 percent of the card transactions that take place all around the globe. However, at its current growth rate, Apple Pay is capable of locking-in as much as 10 percent of the card payments done globally by the time of 2025.

Surpassing PayPal

The overall continued growth of Apple Pay in the global payment space is known to be available at the cost of PayPal as per the leading analysts. The overall comparison of Apple Pay against PayPal is something that Apple has managed to achieve quite recently. Recently, Tim Cook stated that the overall transaction volume of Apple Pay is going higher –almost 4 times as fast as that of PayPal. In fact, the overall rate of user growth with respect to Apple Pay is on the verge of outpacing PayPal.

Mastering the Card Giants

As per the researchers of the study, it has been observed that Apple could compete with the likes of MasterCard and Visa as well as far as its overall payment network is concerned. Still, most experts tend to defer from the given prediction. Apple Pay might not be posing any major challenge to the card giants in the coming times.

In theoretical terms, the company could still consider creating its dedicated network that might be running outside the card systems. However, the expert researchers argue that Apple is still required to ensure the respective card networks that are trusted and ubiquitous. On the other hand, Visa & MasterCard are known to deal with partners (mostly large card-issuing institutions and banks) with the overall scale that is difficult to be mustered by Apple Pay currently.

Leveraging the NFC Hardware

The researchers explain that Apple is capable of benefitting from the given tight hold on the NFC hardware of iPhone. This is something that might have allured the regulators to browse through the overall behavior of Apple more comprehensively. For instance, the antitrust regulators from the European Union (EU) have reached out to other leading companies in the respective payment industry about the overall potential anti-competitive behavior of Apple.

Rise of Contactless Payments

In some other report, it was reported that transactions related to contactless payments are expected to reach around $6 trillion across the globe by the time of 2024 as a result of Apple Pay. The research revealed that Apple Pay is going to account for around 52 percent of the total share –belonging to OEM pay transaction values –up from 43 percent in 2020. The overall expansion of the user base of Apple Pay is major regions of the world –including Far East, Europe, China, and others, is expected to drive maximum growth.

QR Code-enabled Transactions

Apple has recently unfolded the second developer beta version of iOS 14 with some minor changes across the entire system. Given the latest version, the experts have been able to unfold the hidden feature in the leading wallet app of Apple that allows its users to ensure payments with the help of QR codes upon using the Apple Pay app.

As per the references that have been found in the code of iOS 14 unveil that Apple is currently working on an all-new method for allowing its users to make payments with Apple Pay. This is achieved by scanning some QR code or the conventional barcode with the respective iPhone camera. While the given operation has been not been implemented practically, it can be clearly observed that how it is going to work in the future. The users will be expected to point the iPhone camera at the QR code or the conventional barcode for paying bills and other transactions with the help of a card that has been registered with Apple Pay.

The opposite transaction might also occur. In this scenario, the users are expected to hold the iPhone in front of the scanner featuring some QR code that has been generated by the wallet app. It can be said that there is going to be some form of transaction with the third-party applications as well. This is because the given code has been found in the public system API.

Overview of Apple Pay Benefits

In addition to the latest trends, it is also important to know about the potential benefits of using Apple Pay that make it a highly sought-after option in the modern era. Some of the benefits are:

Convenient Transactions: Apple Pay is known to work with the day-to-day Apple devices of people. As such, it does not require the utilization of any additional hardware or software system. This allows the users to pay for the respective products or services even without the utilization of the Messages application.

On the other hand, they might even consider sending over the desired payment to the respective service provider through Siri. The given contactless method turns out to be highly convenient as well as immensely simpler in comparison to using cash or cards. This is because it can be completed securely anywhere and anytime.

Simple Checkouts: With the help of Apple Pay, businesses can look forward to offering some different payment method to the respective customers on the web platform. They can achieve the same for the native iOS apps as well. This allows them to offer a highly secure option to the respective purchasers.

While there are several more benefits of using Apple Pay for transactions, it is recommended to keep a track of the latest trends in the given context. By doing, you remain updated of the latest modifications in the app for enhancing your overall experience.

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Alison

Finance Blogger at Payday Jester

I have a passion for all things finance and business so if I can help you in anyway then please get in touch and if you have any comments or feedback please leave a message.