Analyst estimates Apple Pay used by 253M people worldwide, 31 percent of iPhone install ba...

Posted:
in iPhone edited August 9
Analyst Gene Munster sees Apple Pay as an increasingly important part of Apple's services category, which has enjoyed record-breaking growth over the past few quarters, estimating the payment solution now has 253 million users worldwide.

Gene Munster's graph on Apple Pay usage


In reporting its fiscal third quarter earnings in July, Apple noted a record $9.5 billion in services revenue, a 31 percent jump over the same time the year earlier and a number that beat estimates by a wide margin.

Munster, the longtime Apple analyst now at his own firm Loup Ventures, has been arguing throughout this year that the future of Apple's success is in its services business. The numbers from recent quarters certainly bear that out.

Now, in a new post on Loup's site, Munster says that one particular part of the services sector, Apple Pay, is poised for huge growth in usage. And that after years of catching on slowly, the digital wallet concept is finally gaining traction, mostly in the international market.

"There are currently 24 countries where Apple Pay is accepted, soon be 25 with the addition of Germany later this year," Munster writes. "We now estimate total Apple Pay user base at about 253 million (International at 215m, US at 38m). This means the percentage of Apple Pay users in the U.S. has decreased to 15% and international has increased to 85%."

Apple has reported year-over-year growth of 500 percent, 400 percent, and 300 percent in Apple Pay transitions in the last three quarters, he said. Munster in February estimated Apple Pay to be in use by some 127 million people worldwide.

Munster added that he sees Apple beginning to emphasize Apple Pay more in its advertising for the iPhone -- as it did in an ad released earlier this week -- and Apple Pay gaining traction from its status as the only digital wallet that works with mobile, desktop, in-app, peer to peer, and point of sale.

And while Apple Pay remains only 1 or 2 percent of the Services category -- which also comprises Digital Content and Services, AppleCare, iTunes, the App store, Apple Music and iCloud -- it's continuing to show growth. That's because Apple Pay is expanding to more countries, being accepted by more banks, and more iPhone users are using it.

On its earnings call, Apple announced that it had reached over 1 billion cumulative transactions in the quarter, as well as Apple Pay's imminent arrival in Germany.

Comments

  • Reply 1 of 8
    rogifan_newrogifan_new Posts: 3,005member
    What is he basing this on?
  • Reply 2 of 8
    claire1claire1 Posts: 201unconfirmed, member
    Question is, why did Apple wait this long to advertise? They need a whole campaign dedicated to purchases.
    watto_cobra
  • Reply 3 of 8
    chasmchasm Posts: 703member
    macxpress said:
    Apple doesn't care about the Mac since Steve isn't here anymore. 
    "If I were running Apple, I would milk the Macintosh for all it's worth -- and get busy on the next great thing. The PC wars are over. Done. Microsoft won a long time ago." -- Steve Jobs

    While you're obviously wrong about the Mac generally, it seems to me that Apple has taken Jobs literally at his word (as he himself did when he was at Apple the second time). They're building the next great things, and have been for a long time now. The iPhone, the iPad, AirPods, Apple Watch, iTunes, Apple Music, Apple TV, Touch ID, Face ID, their forthcoming efforts in automotive and AR stuff ... this is literally what Steve wanted them to do. This is really great stuff.

    And speaking of great stuff ... Apple Pay. I'm so glad people are starting to adopt it ... I was on this so fast and have enjoyed using it so much, especially on the Watch. Great things are always kind of slow to go mainstream, but it's been blowing up for a while now in countries where its available (outside America), and now America is finally starting to figure it out. Late to the party, but welcome.
    edited August 10 claire1Rayz2016bshankwatto_cobra
  • Reply 4 of 8
    Interesting would be what is percentage of usage in each country. And is that 35% of users counted against all iOS users or against those that have acess to Apple Pay?
    watto_cobra
  • Reply 5 of 8
    fred1fred1 Posts: 255member
    “This means the percentage of Apple Pay users in the U.S. has decreased to 15% and international has increased to 85%." 

    This is has to be a typo. Isn’t it “. . . and international has increased by 85%.”??
    I don’t think 85% of people internationally are using Apple Pay!
  • Reply 6 of 8
    fred1 said:
    “This means the percentage of Apple Pay users in the U.S. has decreased to 15% and international has increased to 85%." 

    This is has to be a typo. Isn’t it “. . . and international has increased by 85%.”??
    I don’t think 85% of people internationally are using Apple Pay!
    I read it as meaning that out of all Apple Pay users, 15% are in the US and 85% are ROTW.
    watto_cobra
  • Reply 7 of 8
    GeorgeBMacGeorgeBMac Posts: 2,513member
    I have friends who are HORRIFIED at the idea of using their phone for payments ("HACKERS!  I would NEVER do that!").  Yet they don't hesitate to stick their bank debit card with access to their whole bank balances into a gas station scanner....   (Sigh...)
    bshankwatto_cobra
  • Reply 8 of 8
    FolioFolio Posts: 339member
    Last time I looked BAML modeled revenue from ApplePay on a tear, nearing $1B in 2020 (while they still had nothing modeled for HomePod in granular level). Quarter billion users and still pretty sparse in US means runway still huge. But what I'm more excited about is the complete vision Apple is executing on in user time, ecommerce, payment, etc only partially sketched by Munster.
    watto_cobra
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