14 August 2018
Apple has reported its fiscal third-quarter earnings in July in which it revealed a record $9.5 billion in services revenue, which is a 31 percent jump over the same time last year. The company has beaten expectations by a wide margin.
Apple analyst Munster, says that Apple Pay is poised for huge growth in usage in global markets. The digital wallet concept is finally gaining traction in international markets outside the US.
"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 500 percent, 400 percent, and 300 percent growth respectively in Apple Pay transitions in the last three quarters, and 200% more growth in the coming year. Munster estimated that the number of Apple Pay users in February was 127 million.
He adds that Apple will soon to begin to emphasize Apple Pay more in its advertising. Apple Pay has seen an increase in usage as it is the only digital wallet that works with mobile, in-app, desktop, peer to peer and point of sale.
Apple Pay currently contributes just 1 to 2 percent in the Services category, which includes Digital Content and Services, the App store, AppleCare, iTunes, Apple Music and iCloud. Apple Pay is now available in a number of countries and is being accepted by more banks worldwide. Apple revealed during its earnings call that the digital wallet has reached over 1 billion cumulative transactions in the quarter.