VC firm, Loup Ventures, thinks that when it comes to mobile wallets, there is lots to cheer. In its latest report Loup estimates that less than 20% of global smartphone users actually use their smartphone as a wallet but that number will rise to more than 80% in the coming years and it’s Apple Pay that is leading the charge.
According to the report, Apple has several key advantages over rival services from the likes of Google, Samsung, PayPal, Venmo, Square and Stripe. For example, it has the ability to integrate payments into both mobile and desktop operating systems, use its brand to win accepting retailers and supporting banks, and reassure users that transactions are secure and private. Separately, Apple Pay is the only digital wallet with all five payment pillars: mobile, desktop, in-app, peer to peer, and point of sale.
- Apple Pay currently has over 252 million users – 31% of the active iPhone install base.
- Tim Cook indicated on the company’s earnings call last week that there were over one billion Apple Pay transactions during Q3 2018. Loup forecasts a 200% transaction growth next year.
- Apple Pay adoption is accelerating quicker overseas than in the US – 85% of users are international, compared to 15% domestically.