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Apple Pay Gains Traction with eBay Partnership

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eBay will accept Apple Pay by the end of 2018

eBay (EBAY) recently stated that it will allow sellers to accept Apple Pay (AAPL) as a payment option by the end of 2018.

eBay’s senior vice president of payments, Steve Fisher, stated, “Apple Pay is one of the most ubiquitous forms of payments and provides users with an easy, fast and secure way to pay. Offering Apple Pay as a form of payment on eBay is the first step in providing more choice and flexibility in payment options to our tens of millions of buyers.”

Apple Pay will be available as a payment option for select items, and its rollout is expected to be gradual. eBay aims to add customers over the next few months, and it expects Apple Pay to be deployed completely by the end of 2021.

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Partnership will result in substantial growth for Apple Pay

Currently, PayPal (PYPL) is the primary payment option available for eBay customers. Apple Pay is part of the high-growth Apple Services segment, and this partnership with eBay is likely to drive its revenue significantly via large-scale deployments over the next three years.

Apple’s CEO, Tim Cook, claimed that Apple Pay had reported record revenue in the fiscal second quarter. Apple, however, does not report the revenues of the individual verticals under its Services segment. Apple claimed to have doubled its number of active users in the quarter, resulting in a 300% rise in transactions for Apple Pay driven by expansion in global markets.

In the table above, we can see that eMarketer expects the number of Apple Pay users to increase from 19.9 million in 2017 to 27.5 million in 2022. Other mobile payment platforms such as Google Pay (GOOG) (GOOGL) and Samsung Pay (SSNLF) have ~9.3 million and 8.4 million users on their platforms, respectively, as of 2017.

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