After a positive outlook on Apple Pay’s earnings call last week, Loup Ventures estimates that over 20% of smartphone users worldwide rely on their phone as their wallet, but they expect the estimate to rise to 80% soon. Apple analyst Munster(owner of Loup Ventures) predicts that the future of Apple’s business lies in their service sector and the recent Apple’s $9.5 billion service revenue certainly supports Munsters statement.
Based on the latest figures, Munster expects a growth of 200% transactions in the next coming 12 months.
Munster also said that Apple Pay is expected is poised for a huge growth in usage. After years of slow growth, Apple Pay finally gaining traction, mostly in the international market. He also said that now Apple Pay is accepted in 24 countries, soon will be 25 with the addition of Germany. Apple Pay’s user base is now about 254 million (International at 215 million, the US at 38 million), which means that there has been a decrease in Apple Pay users in the US, while the international market has seen a rise of 85% users.
Apple has reported a year-over-year growth of 500%, 400%, and 300% in Apple Pay cash transactions in the past 3 quarters. Munster added that Apple has begun to emphasize more on advertising Apple Pay than iPhone, as it did in an ad released earlier this week. Apple Pay is gaining attraction from its status as only a digital wallet to an app that works with mobile, desktop, in-app, peer-peer, and point of scale.
Apple Pay contributes only 1 or 2% of the services category revenue, which comprises of digital content and services, AppleCare, iTunes, Apple Music, and iCloud. Apple Pay will continue to show more growth as it will expand to many more countries, banks, and also iPhone users.
Apple announced that Apple Pay has reached to over $1 billion transactions in the quarter, also announced its imminent arrival in Germany.