Apple Pay processes $6 trillion annually, edges out Mastercard

Posted:
in iOS
New research claims that Apple Pay has surpassed Mastercard in the dollar value of transactions annually, with its $6 trillion total meaning it's over halfway to equaling Visa.




Since its launch in 2013, Apple Pay has seen rising adoption by users, banks, and retailers, until in 2021 it accounted for 92% of all mobile wallet debit transactions.

Now, according to comparison site TradingPlatforms, Apple Pay is the second most popular digital payment system, beaten only by Visa. The top-ranking Visa processes approximately $10 trillion worth of transactions per year, with Apple Pay on over $6 trillion.

It means that for the first time, Apple Pay has a whole -- including Apple Card -- has overtaken Mastercard, which processes approximately $4.8 trillion worth of transactions. Apple Pay has also beaten Alipay, which reportedly processes exactly $6 trillion worth of transactions.

Google's G Play is said to be in fifth place, with around $2.5 trillion worth of transactions.

"Apple Pay is increasingly becoming the go-to payment method for consumers and businesses alike," said Edith Reads, who is cited as a TradingPlatforms' finance expert. "The fact that it has now processed more transactions than Mastercard is a testament to its popularity."

"Apple Pay has an undue advantage and benefits from their monopoly on iPhone NFC hardware," she continued. "We expect to see Apple Pay continue to grow in popularity and market share in the coming years."

Source: Statista via TradingPlatforms.
Source: Statista via TradingPlatforms.


The data presented appears to be in the ballpark, at least, given what we know about Apple's financial results and transaction fees. The other companies other than Google are more transparent about transaction volume, and those appear to be approximately correct as well.

On top of that, the description of Apple beating Mastercard is likely to be valid because they and the other three companies appear to have been compared over the same period. However, while the data is said to be via Statista and be drawn from "annual transactions," TradingPlatforms does not specify what period that is.

Consequently, it's not clear from whether this is in the last 12 calendar months, or during some unspecified financial year.

The TradingPlatforms' press release reporting on its research is credited to writer Edith Muthoni. But the LinkedIn page for the finance expert she quotes here and in previous articles, Edith Reads, has the same bio photo that Muthoni uses.

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Comments

  • Reply 1 of 23
    red oakred oak Posts: 1,097member
    Wrong. This is the wrong way to look at it 

    Apple Pay sits on top of Mastercard, Visa and other processing network.   Apple does not do any processing
    spock1234tht
  • Reply 2 of 23
     The TradingPlatforms' press release reporting on its research is credited to writer Edith Muthoni. But the LinkedIn page for the finance expert she quotes here and in previous articles, Edith Reads, has the same bio photo that Muthoni uses. ”

    That seems reputable.
    FileMakerFellerwatto_cobra
  • Reply 3 of 23
    blastdoorblastdoor Posts: 3,378member
    And how is CurrentC doing?  :p
    jas99WhoDat?chasmFileMakerFeller
  • Reply 4 of 23
    blastdoorblastdoor Posts: 3,378member
    red oak said:
    Wrong. This is the wrong way to look at it 

    Apple Pay sits on top of Mastercard, Visa and other processing network.   Apple does not do any processing
    Yup, totally. The incumbents have nothing to worry about. Definitely a good time to be complacent. Apple has never disrupted anybody. 
    ronnjas99WhoDat?watto_cobramacgui
  • Reply 5 of 23
    red oak said:
    Wrong. This is the wrong way to look at it 

    Apple Pay sits on top of Mastercard, Visa and other processing network.   Apple does not do any processing
    Your point is reasonable, but there are two problems with it. One, Apple could easily introduce its own processing network or buy an existing one. Two, Apple actually does do some of its own financing/processing, and that's called Apple Pay Later, which isn't widely used yet. I know it's not the same thing, but it DOES involve Apple doing a lot of financial work and taking financial risk. You shouldn't ignore the fact that Apple is getting its feet wet in financing now.
    edited September 2022 ronnjas99spock1234WhoDat?chasmFileMakerFellerwatto_cobra
  • Reply 6 of 23
    larryjwlarryjw Posts: 1,031member
    More disruption is coming summer 2023. The Federal Reserve is coming online with its FedNow. 
    https://www.federalreserve.gov/paymentsystems/fednow_about.htm

    I have no idea how FedNow will affect credit card systems like Apple Pay, MasterCard, Visa, if any. But, I'm sure the issues will be addressed as the implementation date approaches. 

    jas99watto_cobra
  • Reply 7 of 23
    crowleycrowley Posts: 10,453member
    blastdoor said:
    red oak said:
    Wrong. This is the wrong way to look at it 

    Apple Pay sits on top of Mastercard, Visa and other processing network.   Apple does not do any processing
    Yup, totally. The incumbents have nothing to worry about. Definitely a good time to be complacent. Apple has never disrupted anybody. 
    What do they have to be worried about?  Use of ApplePay is also a use of VISA or Mastercard.  They make money whether you use a card or your phone.  I haven't seen any rumours that Apple are going to release anything that competes properly with VISA or Mastercard.
    muthuk_vanalingamchadbaggregoriusmspock1234WhoDat?FileMakerFellerwatto_cobra
  • Reply 8 of 23
    chadbagchadbag Posts: 2,008member
    As others have said, this is not an oranges to oranges comparison (to avoid the pun).  Apple Pay is more akin to First Data or one of the other large processing networks.  While there may be a small amount of first person processibg of their own offerings done by Apple, the large majority of the Apple Pay processing is against Visa or MC cards.  Just like what First Data, Discover Network, etc do.  
    gregoriusmFileMakerFeller
  • Reply 9 of 23
    chadbagchadbag Posts: 2,008member
    What is interesting is if you add the Visa and MC totals together, around 14.8 T $, and make that the denominator with Apple Pay being the numerator, it shows that approximately 40% of CC transactions are processed through Apple Pay, if I got my thinking right.   That is the real story.  

    (You'd really need to add In Discover, Amex, JCB, and Union Pay to the total to get the real denominator)
    gregoriusmspock1234FileMakerFeller
  • Reply 10 of 23
    mike1mike1 Posts: 3,316member
    They better watch out. The regulators will be complaining they are too successful.
    danoxjas99spock1234WhoDat?FileMakerFellerwatto_cobra
  • Reply 11 of 23
    danoxdanox Posts: 3,061member
    Pretty good for a service that the tech analyst’s wrote off as failed service at intro.
    gregoriusmronnjas99WhoDat?chasmFileMakerFeller
  • Reply 12 of 23
    danoxdanox Posts: 3,061member
    chadbag said:
    As others have said, this is not an oranges to oranges comparison (to avoid the pun).  Apple Pay is more akin to First Data or one of the other large processing networks.  While there may be a small amount of first person processibg of their own offerings done by Apple, the large majority of the Apple Pay processing is against Visa or MC cards.  Just like what First Data, Discover Network, etc do.  
    Apple can do more and better but the market is fixed by regulators, with actual government granted monopolies, Hmm…
    jas99WhoDat?
  • Reply 13 of 23
    danoxdanox Posts: 3,061member
    crowley said:
    blastdoor said:
    red oak said:
    Wrong. This is the wrong way to look at it 

    Apple Pay sits on top of Mastercard, Visa and other processing network.   Apple does not do any processing
    Yup, totally. The incumbents have nothing to worry about. Definitely a good time to be complacent. Apple has never disrupted anybody. 
    What do they have to be worried about?  Use of ApplePay is also a use of VISA or Mastercard.  They make money whether you use a card or your phone.  I haven't seen any rumours that Apple are going to release anything that competes properly with VISA or Mastercard.
    The market is fixed by government, so Apple can’t at this time.
    gregoriusmWhoDat?
  • Reply 14 of 23
    chadbagchadbag Posts: 2,008member
    danox said:
    crowley said:
    blastdoor said:
    red oak said:
    Wrong. This is the wrong way to look at it 

    Apple Pay sits on top of Mastercard, Visa and other processing network.   Apple does not do any processing
    Yup, totally. The incumbents have nothing to worry about. Definitely a good time to be complacent. Apple has never disrupted anybody. 
    What do they have to be worried about?  Use of ApplePay is also a use of VISA or Mastercard.  They make money whether you use a card or your phone.  I haven't seen any rumours that Apple are going to release anything that competes properly with VISA or Mastercard.
    The market is fixed by government, so Apple can’t at this time.
    Exactly what is fixed by the government? (And what government?)
    mike1crowley
  • Reply 15 of 23
    danoxdanox Posts: 3,061member
    crowley said:
    blastdoor said:
    red oak said:
    Wrong. This is the wrong way to look at it 

    Apple Pay sits on top of Mastercard, Visa and other processing network.   Apple does not do any processing
    Yup, totally. The incumbents have nothing to worry about. Definitely a good time to be complacent. Apple has never disrupted anybody. 
    What do they have to be worried about?  Use of ApplePay is also a use of VISA or Mastercard.  They make money whether you use a card or your phone.  I haven't seen any rumours that Apple are going to release anything that competes properly with VISA or Mastercard.
    If the government allows it they can….
    WhoDat?
  • Reply 16 of 23
    crowleycrowley Posts: 10,453member
    danox said:
    crowley said:
    blastdoor said:
    red oak said:
    Wrong. This is the wrong way to look at it 

    Apple Pay sits on top of Mastercard, Visa and other processing network.   Apple does not do any processing
    Yup, totally. The incumbents have nothing to worry about. Definitely a good time to be complacent. Apple has never disrupted anybody. 
    What do they have to be worried about?  Use of ApplePay is also a use of VISA or Mastercard.  They make money whether you use a card or your phone.  I haven't seen any rumours that Apple are going to release anything that competes properly with VISA or Mastercard.
    If the government allows it they can….
    Why have you posted twice saying essentially the same thing without any detail?  What government is preventing Apple from setting up an alternative to VISA and Mastercard?
    WhoDat?ronnzoetmb
  • Reply 17 of 23
    danoxdanox Posts: 3,061member
    chadbag said:
    danox said:
    crowley said:
    blastdoor said:
    red oak said:
    Wrong. This is the wrong way to look at it 

    Apple Pay sits on top of Mastercard, Visa and other processing network.   Apple does not do any processing
    Yup, totally. The incumbents have nothing to worry about. Definitely a good time to be complacent. Apple has never disrupted anybody. 
    What do they have to be worried about?  Use of ApplePay is also a use of VISA or Mastercard.  They make money whether you use a card or your phone.  I haven't seen any rumours that Apple are going to release anything that competes properly with VISA or Mastercard.
    The market is fixed by government, so Apple can’t at this time.
    Exactly what is fixed by the government? (And what government?)

    Read below

    Once again a USA government granted monopoly the market isn’t open, however Apple may one day stick a pin in it, but today ain’t that day….

    Both Visa and Mastercard go far above and beyond Apple in any market Apple is in they are in fact a monopoly.

    Debit card swipe fee price fixing[edit]

    Both Mastercard and Visa have paid approximately $3 billion in damages resulting from a class-action lawsuit filed in January 1996.[33] The litigation cites several retail giants as plaintiffs, including Wal-MartSears, Roebuck & Co., and Safeway.[34]

    Antitrust settlement with U.S. Justice Department[edit]

    In October 2010, Mastercard and Visa reached a settlement with the U.S. Justice Department in another antitrust case. The companies agreed to allow merchants displaying their logos to decline certain types of cards (because interchange feesdiffer), or to offer consumers discounts for using cheaper cards.[35]

    Payment card interchange fee and merchant discount antitrust litigation[edit]

    On November 27, 2012, a federal judge entered an order granting preliminary approval to a proposed settlement to a class-action lawsuit[36] filed in 2005 by merchants and trade associations against Mastercard and Visa. The suit was filed due to alleged price-fixing practices employed by Mastercard and Visa. About one-fourth of the named class plaintiffs have decided to opt-out of the settlement. Opponents object to provisions that would bar future lawsuits and prevent merchants from opting out of significant portions of the proposed settlement.[37]

    Plaintiffs allege that Visa Inc. and Mastercard fixed interchange fees, also known as swipe fees, that are charged to merchants for the privilege of accepting payment cards. In their complaint, the plaintiffs also alleged that the defendants unfairly interfere with merchants from encouraging customers to use less expensive forms of payment such as lower-cost cards, cash, and checks.[37]

    A settlement of $6.24 billion has been reached and a court is scheduled to approve or deny the agreement on November 7, 2019.[38]

    edited September 2022 WhoDat?
  • Reply 18 of 23
    crowleycrowley Posts: 10,453member
    danox said:
    chadbag said:
    danox said:
    crowley said:
    blastdoor said:
    red oak said:
    Wrong. This is the wrong way to look at it 

    Apple Pay sits on top of Mastercard, Visa and other processing network.   Apple does not do any processing
    Yup, totally. The incumbents have nothing to worry about. Definitely a good time to be complacent. Apple has never disrupted anybody. 
    What do they have to be worried about?  Use of ApplePay is also a use of VISA or Mastercard.  They make money whether you use a card or your phone.  I haven't seen any rumours that Apple are going to release anything that competes properly with VISA or Mastercard.
    The market is fixed by government, so Apple can’t at this time.
    Exactly what is fixed by the government? (And what government?)

    Read below

    Once again a USA government granted monopoly the market isn’t open, however Apple may one day stick a pin in it, but today ain’t that day….

    Both Visa and Mastercard go far above and beyond Apple in any market Apple is in they are in fact a monopoly.

    Debit card swipe fee price fixing[edit]

    Both Mastercard and Visa have paid approximately $3 billion in damages resulting from a class-action lawsuit filed in January 1996.[33] The litigation cites several retail giants as plaintiffs, including Wal-MartSears, Roebuck & Co., and Safeway.[34]

    Antitrust settlement with U.S. Justice Department[edit]

    In October 2010, Mastercard and Visa reached a settlement with the U.S. Justice Department in another antitrust case. The companies agreed to allow merchants displaying their logos to decline certain types of cards (because interchange feesdiffer), or to offer consumers discounts for using cheaper cards.[35]

    Payment card interchange fee and merchant discount antitrust litigation[edit]

    On November 27, 2012, a federal judge entered an order granting preliminary approval to a proposed settlement to a class-action lawsuit[36] filed in 2005 by merchants and trade associations against Mastercard and Visa. The suit was filed due to alleged price-fixing practices employed by Mastercard and Visa. About one-fourth of the named class plaintiffs have decided to opt-out of the settlement. Opponents object to provisions that would bar future lawsuits and prevent merchants from opting out of significant portions of the proposed settlement.[37]

    Plaintiffs allege that Visa Inc. and Mastercard fixed interchange fees, also known as swipe fees, that are charged to merchants for the privilege of accepting payment cards. In their complaint, the plaintiffs also alleged that the defendants unfairly interfere with merchants from encouraging customers to use less expensive forms of payment such as lower-cost cards, cash, and checks.[37]

    A settlement of $6.24 billion has been reached and a court is scheduled to approve or deny the agreement on November 7, 2019.[38]

    None of that supports your point at all.  Quite the opposite in fact, it points to government taking antitrust action against Mastercard.
    WhoDat?chasmronnzoetmb
  • Reply 19 of 23
    red oakred oak Posts: 1,097member
    chadbag said:
    What is interesting is if you add the Visa and MC totals together, around 14.8 T $, and make that the denominator with Apple Pay being the numerator, it shows that approximately 40% of CC transactions are processed through Apple Pay, if I got my thinking right.   That is the real story.  

    (You'd really need to add In Discover, Amex, JCB, and Union Pay to the total to get the real denominator)
    That is the right analytical approach 
    chasmwatto_cobra
  • Reply 20 of 23
    chasmchasm Posts: 3,382member
    I absolutely love using Apple Pay, particularly on my Apple Watch which is far more convenient than fishing for my wallet.
    watto_cobra
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