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Apple Pay Transactions Rose Significantly in Q4 of Fiscal 2018


Nov. 27 2018, Updated 8:18 a.m. ET

Apple Pay is part of Services segment

Apple’s (AAPL) Services segment revenue rose 17% YoY to almost $10 billion in the fourth quarter of fiscal 2018, which ended in September, up from $8.5 billion last year. Apple’s Services business is the fastest growing business for Apple. While the Services revenue was primarily fueled by App Store sales, Apple Pay is quickly gaining traction as a leading payment service.

In the fourth quarter, Apple claimed that Apple Pay transaction volumes tripled YoY. This growth was driven by regional expansion as well as partnerships with retail chains such as CVS (CVS) and Costco (COST).

Approximately 60% of retailers in the United States now support Apple Pay. Apple further stated that this figure is at 71% for the top 100 retailers. However, major retail chains such as Target (TGT) and Walmart (WMT) are not accepting Apple Pay or any other mobile payment application.

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P2P payment transaction value might cross $150 billion this year

Apple Pay has a peer-to-peer (or P2P) payment component called Apple Pay Cash. eMarketer has estimated that P2P payment services such as Apple Pay amounted to $120.4 billion in 2017. This figure is estimated to rise to $244 billion by the end of 2021.

Apple Pay is available in 30 countries, and the company is targeting further expansion by the end of 2018. Apple Pay already has an active user base of approximately 300 million, up from 127 million in February this year. This business vertical will most likely continue to grow at a robust pace over the next few quarters.


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