A recent study indicates that Apple’s payment sector, including services like Apple Pay, often goes undervalued by investors despite its apparent growth potential. Even with an indifference from some market players, Apple Pay has reported a 500% year-over-year rise in transaction volume suggesting lucrative investment prospectus.
The positive synergy between Apple’s hardware and its payment services has not only created a niche but a loyal customer base. This army of faithful customers consistently picks Apple Pay over other available digital payment alternatives. Insiders anticipate that, along with noteworthy product lines, the payment division will noticeably contribute to Apple’s overall growth in future.
Significant growth awaits Apple Pay in the Business-to-Consumer (B2C) payment realm along with a potential expansion in the Business-to-Business (B2B) category. This expansion will consolidate Apple Pay’s position in the competitive digital payment market.
Undervalued growth of Apple Pay
Apple aims to replace traditional means like employee badges and transit cards with Apple Pay functionality. Companies like Stripe are helping to make this a reality.
There is speculation that Apple may eventually aim to control the entire payment process. An integrated payment system would offer additional convenience to the user but might also raise issues with existing partners and regulatory authorities. Apple therefore need to approach this carefully.
Despite Apple Pay’s growing corporate influence, it lags behind PayPal in terms of ecommerce recognition. However, changes in the digital landscape always present an opportunity for Apple to bridge this gap and even surpass competitors.
A ‘Buy Now, Pay Later’ feature has been launched by Apple which could prove transformative. Such a feature is appealing to online retailers and could shift consumer behaviour, possibly leading to growth in the usage of Apple Pay at the expense of other means of online transaction.
