After more than 18 months since Apple launched Apple Pay in the USA, the company says that its mobile payments service is gaining a million users a week, but admits that this is still not resulting in any meaningful revenues. Offering a limited glimpse at the Apple Pay stats during a second quarter earnings call, CEO Tim Cook said that transaction volumes are five times higher than a year ago.
Cook declined to put a figure on actual transactions volumes, probably with good reason, as CFO Luca Maestri confirmed during the same call that Apple isn’t seeing any meaningful revenue impact from Apple Pay yet, although it may in the future.
Launched in the States with huge hype in late 2014, Apple Pay saw impressive early adoption but within a year growth appeared to have stalled, research from Phoenix Marketing International found.
This has been offset to some degree over the last year by the service’s arrival in the UK, China, Singapore, Australia and Canada.
But in China Apple has been forced to charge banks half the fees levied on their US counterparts (American banks agreed to pay Apple a fee of 0.15% of the value of each credit card transaction via Apple Pay), while in Australia and Canada the feature has only been available to American Express cardholders as banks shun it in favour of their own offerings.
However, one Oz provider, ANZ, is changing its stance. After months of negotiations, the fourth largest bank in Australia is set to start letting its five million customers use Apple’s service.
ANZ Chief Executive Officer Shayne Elliott, CEO, ANZ, says: „I’m proud we’re the first major Australian bank to offer Apple Pay and we are confident the convenience, security and privacy will be well received by our customers.”
Meanwhile, Apple Pay is set to arrive on more countries – including Spain and Brazil – this year but it faces competition from fellow tech firms such as Google and Samsung, as well as banks and retailers.
Apple posted for its fiscal 2016 second guarter ended March 26 (2016) revenue of $50.6 billion and quarterly net income of $10.5 billion. These results compare to revenue of $58 billion and net income of $13.6 billion, in the year-ago quarter. Gross margin was 39.4 percent compared to 40.8 percent in the year-ago quarter. International sales accounted for 67 percent of the quarter’s revenue.
Source: finextra.com
Banking 4.0 – „how was the experience for you”
„So many people are coming here to Bucharest, people that I see and interact on linkedin and now I get the change to meet them in person. It was like being to the Football World Cup but this was the World Cup on linkedin in payments and open banking.”
Many more interesting quotes in the video below:
