Costco has started accepting Apple Pay across 750 stores
Apple (AAPL) has been aggressively expanding its mobile payment service, Apple Pay, for the last few years. Apple Pay is now available in the US and 30 international markets. The tech giant has recently landed a massive partner for Apple Pay in the United States. Retail giant Costco (COST) has started accepting Apple Pay across 750 stores.
Apple has secured similar deals with 7-Eleven and CVS. Apple also bagged a deal with online retailer eBay (EBAY) earlier this year. Juniper projects that Apple Pay will account for 50% of all contactless payments operated by an OEM (original equipment manufacturer), which includes Samsung (SSNLF) Pay and Google (GOOGL) Pay, by 2020.
Apple Pay could be a meaningful contributor to Apple’s growth in the future
Apple Pay is a part of Apple’s Services segment, which includes Apple Music and the App store. The iPhone maker could be dependent on the Services division for growth in the future as its iPhone unit growth tapers off.
In Apple’s fiscal third quarter, the services segment grew 31% YoY to reach $9.6 billion, and is Apple’s second-biggest segment by revenue.
Apple Pay might be a significant contributor to the services segment in the future. Apple’s content business is also likely to boost the segment.