"2015 will be the year of Apple Pay," Apple CEO Cook said.
Since its launch in October last year, Apple Pay, Apple's mobile payment service, has been receiving much attention from the market. Although not the "first person to eat crabs", Apple's strong brand appeal still makes the market a little more than expected. At the performance briefing on the 27th, Cook did not praise the words, "show off" Apple Pay launched its first transcript in more than three months. Affected by this, more NFC stocks in the US stock market rose sharply after the 28th.
Apple Pay is growing rapidly
Apple Pay, the Apple mobile payment service, made its debut in September last year and officially launched in October last year. As a "rich family" born with a gold spoon, Apple Pay has taken over 500 US financial institutions and 220,000 retailers at the beginning of its listing. Bank of America, JPMorgan Chase and Citigroup have all become their first partners.
On the 27th, Cook showed the latest transcripts of Apple Pay at the latest performance briefing: At present, 750 banks and credit unions in the United States have accepted Apple Pay services, and a large number of chain stores have begun to use this service; In the contactless card payment transaction covered by Sa/MC/AMEX three major credit card payment networks, $2 per $3 is done through the use of Apple Pay.
Feedback from customers also confirmed the rapid expansion of Apple Pay. Whole Foods, the organic food chain, began using the Apple Pay service last October and processed more than 150,000 payment transactions in the first week. The company said its mobile payment transaction volume increased by 400% due to the introduction of Apple Pay. Currently in the United States, large retailers including McDonald's and Staples have basically accepted Apple Pay transactions, and Starbucks plans to integrate Apple Pay into its mobile app client in the near future.
However, in the short term, Apple Pay is still very difficult to bring considerable income to Apple. According to Colin Gillis, an analyst at BGC Partners, Apple Pay can only charge a commission of $0.15 for every $100 transaction. In the third quarter of last year's revenue, if you want to use Apple Pay to promote Apple's 1% revenue growth, the transaction size needs to reach 450 billion US dollars. According to market research firm Forrester, the total size of the US mobile payment market in 2014 was $52 billion.
But this still does not prevent the market from optimistic about the prospects of this new service. Analysts believe that Apple Pay can help increase the user's stickiness to Apple's iOS devices, and if Apple Pay becomes the dominant payment model in the next few years, Apple can easily raise fees.
NFC application has broad prospects
Just before Apple’s earnings report on the 27th, USA Technology (USAT), a US-based provider of payment processing services for self-service facilities, announced a partnership agreement with Apple to support Apple Pay on its nearly 200,000 terminal devices. Coffee machines, vending machines, telephone booths, self-service laundry rooms, parking lot toll stations, etc., make Apple Pay directly linked to the daily use of consumers.
Boosted by this news, USA Tech's share price rose 5% on the 27th regular trading session of the US stock market, up 4.3% after the market, NFC reader manufacturer On Track (OTIV) rose 1.85% after the market, the NFC control component of the iPhone 6 Vendor NXP Semiconductors (NXPI) rose 1.8% after the close.
NFC is the core technology adopted by Apple Pay services, allowing contactless point-to-point data transmission between electronic devices. With NFC technology, users only need to contact mobile devices such as smart phones and POS terminals to complete the payment, no need to swipe the card, more convenient. Google’s previously launched mobile payment service, Google Wallet, is also adopting this technology.
According to market information research firm Gartner, by 2017, 5% of mobile payment transactions will use NFC technology. The column on the well-known financial information website SeekingAlpha pointed out that due to the adoption of NFC technology in Apple iPhone 6, it is estimated that 10% to 20% of mobile payment transactions will adopt NFC technology by 2017.
Analysts pointed out that Apple's entry into the electronic payment market will create a huge popularity effect, attracting more competitors to adopt NFC technology, thereby further boosting chip demand. According to Reuters, the number of mobile phones equipped with NFC chips will increase from 300 million last year to 550 million.
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