Don’t be shocked if the individual checking out in front of you uses their iPhone rather than a credit card to make their purchase the next time you’re out shopping.
According to information from Salesforce quoted by Deutsche Bank analyst Bryan Keane, the use of Apple Pay, a payment service offered by Apple, increased by 52% in November over the same month last year. That included both online payments made using Apple devices and in-store proximity payments.
That’s terrible news for digital wallet services like PayPal Holdings and other, older ones. Apple is quickly gaining market share, and its ambitions in the financial space may stunt the expansion of its competitors.
Apple Pay’s Impact on the Market
While the number of Apple Pay users increased, fewer people used PayPal and conventional credit cards in November. Although for online and in-store transactions, respectively, both of those methods have significantly bigger user bases than Apple Pay, this finding indicates that people are abandoning more traditional payment methods in favor of Apple Pay.
Despite this, PayPal continues to rule the online payment world. It was utilized by customers for 16% of all e-commerce transactions. With only 5% of transactions using Apple Pay, it is, at this point, far behind. PayPal is also the biggest player in the world of gaming. If you want to choose the best PayPal online casinos in New Jersey, you can do so via iGamingnj website, it has all the latest news and articles about the gaming industry in NJ.
Over the past few years, PayPal has significantly increased the capability of its services. It unveiled a revamped app and put a strong emphasis on making its services ecosystem the hub of its consumers’ financial lives. In addition to its primary online payment service, it also provides bill paying, investing, and cash management.
To PayPal’s credit, management claims that it is increasing its market share in e-commerce. Although PayPal switched from using QR codes to offering real debit cards for PayPal and Venmo, in-store purchases still pose a great difficulty. Despite its efforts over the past two years to boost utility, PayPal’s profits may suffer if consumers return to in-store transactions.
The fact that Apple Pay is still only available on Apple devices now limits Apple’s potential to advance further. However, Apple Pay has a lot of potential to grow.
Apple Financing
Recently, Apple increased its investment in the financial services industry, which may turn out to be the next significant growth engine for the company’s services division.
This summer, Apple announced the purchase now, pay later option, which was a significant step toward the company’s goal of becoming a financial services provider. Through a company called Apple Financing, Apple is managing the financing and servicing of those point-of-sale loans internally rather than outsourcing them to a third party. But considering the reach of PayPal, it is unlikely that it will lose its foothold in major markets like gambling. If you live in Pennsylvania and want to learn more about your state’s gaming market, visit iGaming PA for news, articles, and the latest welcoming bonuses.
Apple might develop into a full-fledged fintech business similar to PayPal if it had the ability to do credit checks, make decisions on lending, and service financial goods internally. The top competitor in the market faces serious challenges from Apple Pay’s expanding user base as well as the growth of the services available via Apple’s digital wallet.
