Apple Pay: Was a joke, is no more

From Aaron Pressman’s “Apple Pay Tops the Mobile Pay Market For the First Time” posted Wednesday by Fortune:

Apple’s mobile payments app, Apple Pay, has overtaken Starbucks to become the most popular U.S. payments app.

Apple Pay has 30.3 million users, up 38% from estimates earlier last year, followed by Starbucks with 25.2 million, up 8%, market research firm eMarketer said in new report on Wednesday. The firm released its previous estimates in May, 2018. For this year, Google Pay trails in third place with 12.1 million users, up 9%…

Apple Pay now looks like another example of Apple introducing a ground-breaking if flawed product and slowly improving it over time until it becomes a market leader. Other examples include the Apple Watch and the iPhone itself.

My take: Who remembers Steve Jobs’ (possibly apocryphal) parable of the polished rocks?

10 Comments

  1. Mordechai Beizer said:

    I love watching old Steve Jobs video clips. He was an amazing individual. Thanks for posting the clip.

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    October 23, 2019
  2. Fred Stein said:

    Apple Pay has 4 growth vectors. Each have several years of double digit growth.
    1) More users
    2) More merchants
    3) More services (and partnerships) based on Pay / Wallet / Secure enclave / Watch, etc.
    4) More countries

    It’s a beast.

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    October 23, 2019
    • Jerry W Doyle said:

      @Fred Stein: So true! I believe Apple Pay will become even more potent and profitable revenue stream when Apple is able to break its umbilical cord from MC and establish its own financial network system.

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      October 23, 2019
  3. Jerry W Doyle said:

    I love using my digital wallet for financial transactions. I have become so dependent on paying digitally with my Apple Watch that I am developing a bad habit that could be personally costly. With my watch on my wrist I frequently drive off from home in my vehicle leaving my wallet behind with my driver’s license inside. Then I arrive at some vendor ready to consummate payment only to realize that the vendor does not employ a contactless payment system. I grab for my wallet containing old-fashioned credit cards only to discover my wallet is back home and I am driving without a driver’s license. Careless!

    I deplore cash. I detest change and refuse to carry coins in my pockets. I crave to go to a complete digital society where everything is on my watch: my digital money, my driver’s license, my medical insurance cards, social security card, etc., all ready and subject for use at a NFC device. Unfortunately, our society is not at that omnipresent technological service level.

    A contributing factor to this problem for me is my becoming so dependent on my Watch. I can leave home without my iPhone and am ok when I realize I do not have the device on me. Leave home without my Watch (which happened only once) and I return home to retrieve it.

    In summary, my Apple Watch is more than Apple Pay. My Apple Watch is my access for carrying out my activities of daily living, including using Apple Pay when available.

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    October 23, 2019
  4. Fred Stein said:

    Also note: Google Pay up 9%, vs. Apple Pay up 38%.

    Yet again, Apple wins where it counts.

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    October 23, 2019
  5. Gregg Thurman said:

    Also note: Google Pay up 9%, vs. Apple Pay up 38%.

    The Leader, the Largest is growing FASTER than everyone else. WoW.

    I’ve said it before, I’ll say it again, I don’t see Apple cutting the MC umbilical, I see Apple BUYING the umbilical, getting the network, the customers, the countries and the merchants in the process.

    When THAT happens merchant agreements will require acceptance of Apple Pay.

    When Apple buys MC it will have::
    1) More users
    2) More merchants
    3) More services (and partnerships) based on Pay / Wallet / Secure enclave / Watch, etc.
    4) More countries

    Five years max.

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    October 23, 2019
    • Dan Scropos said:

      I like the idea but is it practical? $260 billion market cap and a P/E of 47 seems wildly expensive.

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      October 23, 2019
    • Jerry W Doyle said:

      @Gregg Thurman: “…. I see Apple BUYING the umbilical, getting the network, the customers, the countries and the merchants in the process.”

      My take: “…The best predictor of future behavior is past behavior.”

      Apple has shown us time-and-again that Apple is not willing to lay-out gobs-of-money (which it could do easily) to ramp-up operations. Think NetFlex, Disney, Hulu, Roku, Spotify, Activision, Tesla and other mentioned acquisitions of which I could enumerate and which many of us on this chat board posited where Apple easily and quickly could have traversed immediately up-to-speed toward reaching its operational goals. Instead, Apple prefers to lay-out meticulously, comprehensively, its own infrastructure path to retain maximum continuity-of-integrity over the finished operational product or service.

      You may be correct in your perception Gregg, but when one examines Apple’s past history large acquisitions is not the path Apple follows. I see instead, Apple building-out its own infrastructure while piggy-backing on MC’s until such time Apple no longer needs to retain operationally, linkage with MC.

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      October 23, 2019
  6. Kirk DeBernardi said:

    The article states —

    “…Apple Pay now looks like another example of Apple introducing a ground-breaking if flawed product and slowly improving it over time…”

    Flawed?

    How about potential not yet fulfilled?

    Iterate — iterate — iterate.

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    October 23, 2019

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