- On September 16, 2020
With a 15 percent market share of mobile devices, Apple/iOS possesses a massive potential for Apple Pay users. More than 50 percent of online purchases are estimated to be made from mobile devices since late-2014 when Apple Pay made its debut. Analysts estimate Apple Pay could account for 10 percent of all card transactions by 2025.
With dynamic encryption, Apple Pay is the most secure payment method available. TouchID, Apple’s fingerprint technology, and FaceID, facial recognition, provide additional protection. In response to an increasing reliance on contactless payments, payments made with Apple Pay are becoming ubiquitous. Emerging generations with cash flow are poised to place Apple Pay among the major players in the years to come.
Here are the Apple Pay trends for 2020:
- QR Code Scanning
Apple is working on allowing users to scan a QR Code or traditional barcode with the iPhone camera to make payments via Apple Pay. Users can also use the feature vice versa where they can hold the iPhone’s Wallet app-generated QR Code in front of a scanner.
- Near-Field Communication
Apple maintains its tight hold on near-field communication, or NFC, hardware, which enables contactless payment. European Union regulators have even contacted other payments industry companies regarding Apple’s possible anticompetitive behavior.
- Emerging Generations
Younger generations who grew up with cell phones prefer digital payments. 73 percent of polled millennials agree they will make all of their payments with a mobile phone eventually.
- OEM Pays Growing Percentage
Apple Pay is estimated to account for 52 percent of OEM Pays transaction values as compared to 43 percent in 2020. OEM Pays is the mobile payment application that enables users to add cards from multiple banks to the wallet application.
- Outpacing PayPal
A long-term competitive threat to PayPal, Apple Pay continues to enjoy growing support from retailers and inside applications. Not only is Apple Pay’s new user growth outpacing PayPal, but Apple Pay transaction volume is growing four times as fast as PayPal.
- Visa and Mastercard Partnership
For now, Apple still needs Visa and Mastercard, which are trusted and all-pervasive. Apple Pay could build up to becoming the equivalent to large card-issuing banks with which Visa and Mastercard traditionally partner. Unlikely to happen anytime soon, Apple may one day end up competing with Visa and Mastercard.
- iOS 14 Beta Release
With small changes across the system, the second iOS 14 developer beta was released in July 2020. Scheduled to be released to the public later in 2020, iOS 14 will feature new capabilities for Apple Pay, including the QR Code scanning capability.
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