the novel coronavirus pneumonia outbreak will lead to a sharp increase in the amount of contactless payment. The next Apple Corp’s anti monopoly war will revolve around the Apple Pay. In 2020, the Cupertino based technology giant spent a lot of time fighting charges of anti competitive behavior in its app store. By contrast, Apple’s financial services business has received little attention in the United States. In a 450 page report released in October by the U.S. Congress antitrust sub committee, almost nothing about financial services was mentioned.
but because of novel coronavirus global pandemic, consumers are trying to avoid touching buttons or handling cash, thus Apple Pay’s business is growing rapidly. This month, Jennifer Bailey, head of Apple pay, said contactless payments had “transformed from a convenient means of payment to an important public health issue.”. < / P > < p > in a survey, visa found that nearly half of consumers “would not” choose to shop in stores that do not offer touch free checkout services. < / P > < p > Apple pay allows users to store payment card details on an iPhone or apple watch and pay by clicking on the terminal. Loup ventures analysts say apple pay is currently used by about 507 million people worldwide, about half of the world’s iPhone users, up from 67 million four years ago. < / P > < p > Apple charges a 0.15% handling fee for each transaction via Apple pay. Before the outbreak of the new crown, Bernstein analysts predicted that Apple would facilitate one tenth of the world’s credit card transactions by 2025. “Apple is really using the apple pay team to build a financial services giant,” said Jason Gardner, chief executive of marqeta, a California based payment platform < / P > < p > “Apple wallet is a killer app that is more powerful than most people in the world now understand. In the future, this will definitely be a battlefield for regulators. ” < / P > < p > in June, the European Commission launched a formal antitrust investigation into Apple pay, and the Dutch competition regulator also launched an investigation this month. Philip Lowe, the governor of Australia’s central bank, recently said Apple’s payment method “raises a series of competition issues.”. Thomas vinje, a partner at Clifford Chance, said EU regulators were keen to keep Apple pay high on the agenda. “In my opinion, the EU’s appetite for antitrust litigation against apple is very strong, and clearly there is a politically relevant impetus behind it,” he said Jonathan Osborne, a former federal prosecutor and gunster lawyer in Florida, said: “Apple offers consumers only one choice of payment service, which is bound to attract the attention of regulators.” < / P > < p > however, Apple claims that the restriction is for security reasons. Bailey told the European Commission in December that Apple wanted to protect data privacy for all users. < / P > < p > she said: “we don’t store or access your original bank card or credit card number, nor will merchants. So when you use Apple pay to buy things, apple doesn’t know what you bought or where you bought it. ” According to Bailey, competitors may use “a technology architecture that is ultimately less private and less secure.”. However, critics point out that Apple does acquiesce in car manufacturers, hotel companies and fitness equipment manufacturers to use NFC chips on their devices to implement some non payment functions. < / P > < p > another problem is that unlike competitors’ payment tools such as PayPal, apple pay’s wallet app is pre installed on Apple devices and users cannot delete it. In addition, Apple has taken some measures to encourage users to use it. “If possible, you need to make apple pay the default payment option,” Apple said in its online guide to app developers. If the user has Apple pay enabled, assume that person wants to use it. You need to consider using the apple pay button as the first or only payment option, showing it larger than the other options, or visually distinguishing it with a single line. ” < / P > < p > such a strategy could be opposed under rules proposed by the EU this week. The rule requires large technology companies not to promote their services to a level higher than their competitors on their operating platforms. < / P > < p > Arik shtilman, chief executive of rapid, a financial technology services group, predicts that if Apple can avoid regulatory pressure, its payment division’s revenue may eventually exceed that of the app store. In the past 12 months, the app store has generated more than $20 billion in net revenue for apple, according to sensor tower. “The impact of Apple pay on revenue can easily be much greater than the app store,” says Stillman Given the proliferation of e-commerce transactions, the rise of contactless in store payments, and the revenue Apple earns from credit card transactions, the opportunities for Apple pay are “endless,” he said. “No one can deny that Apple pay will not grow at a compound rate and reach tens of billions of dollars in revenue in 10 years,” he said < / P > < p > the relatively cautious data is that evercore ISI analysts believe that by 2024, apple pay’s handling fees could reach $6.5 billion.
, however, Apple Pay has not yet had an impact on some large markets, especially in China, which is dominated by Alipay (Alipay) and WeChat (Pay), and 85% of Mexico people use Android mobile phone. “It’s cool, it’s good, it shows that Apple pay is not the only option, its services are very different geographically,” said Thomas Olsen, a consultant to Bain consultant < / P > < p > at the same time, in the United States and Europe, Google, Samsung, Starbucks, venmo, Zelle, square and Amazon all offer digital wallet services. Some companies are far bigger than apple in the P2P payment field, and most of them have Android and IOS applications at the same time, which makes them occupy a broader market. < / P > < p > however, unlike the companies mentioned above, apple is linking the services it can provide in a number of ways to expand its reach. For example, rewards are offered according to the number of credit cards bound in the user’s wallet to encourage P2P payment in Apple’s wallet in the future, rather than pushing these potential users into the hands of Zelle or venmo. < p > < p > Interior intelligence payment analyst Jaime toplin predicts that increasing the user stickiness of Apple pay will help Apple expand more “value-added services”, such as “buy it now” and “pay first”.
Alipay and WeChat payments have shown how businesses can expand from contactless payment solutions to value-added areas such as microfinance, wealth management, insurance and payment bills. It’s not clear if Apple has such ambitions. But when Tim Cook, Apple’s chief executive, was asked in October about Apple pay, his excitement was palpable. “Apple pay has performed exceptionally well,” cook told investors He added that the novel coronavirus had made the United States “take a different track” when using non-contact technology. “So we are very optimistic about this area. In this area, apple can do more, so this is an area of great interest to us. ” The iPhone 12 keynote has been recorded in Apple park