Financial services

Does Apple Pay Have a Chance of Beating its Rivals in the Financial Services Sector?

Does Apple Pay Have a Chance of Beating its Rivals in the Financial Services Sector?

With Apple being one of the world’s biggest tech giants, it seems somewhat surprising that it’s so late to the financial services party with its payment system. Apple Pay was initially released in 2014, just as its main rival, PayPal, was preparing to leave the shackles of eBay and become one of the world’s biggest payment platforms. Apple tends to take the planet by storm with its inventions, though, and it wouldn’t be surprising to see Apple Pay catch up in the next few years.

Slowly Creeping into Various Sectors

PayPal took almost 20 years to become the behemoth it is today, and spent most of its early years solely handling eBay transactions. Apple Pay has got off to a faster start and has already shown up in several important sectors. The service is accepted at 85 percent of retailers in the USA, and it can even be used for small things such as taxi fare payments. The fact that Apple Pay is already cropping up in the booming gaming industry is a good sign, as this important form of entertainment has been known to push tech developments over the last decade. The service can already be used to pay for things in the App Store, as well as Apple Arcade.

Spreading further into the gaming industry, another major sign of progress is Apple Pay’s appearance in the online casino sector. For example, Amber Spins shows up in a review of the top casino offers, partly because it has broadened its payment options to include Apple Pay. The online casino landscape is highly competitive, so it makes sense for sites to begin offering alternative payment methods to cater to their players. However, due to the service’s incompatibility outside of Apple devices, big players such as the Xbox and Playstation stores, as well as many more gaming and entertainment platforms, are yet to include Apple Pay in their payment options.

Unwillingness to Spread Outside of Apple Could Limit it

With Apple Pay being integrated across Apple devices and services, it’s likely to appeal to users of the company’s products greatly. It will be highly convenient when sticking to these things and will probably become a favoured method of payment by the estimated 1 billion iPhone users around the world. The main problem is the fact that it is only compatible with Apple products. This means that the other 6 billion people who don’t own an iPhone won’t be able to use it. If it doesn’t spread out onto other devices, there’s little chance that Apple Pay will be able to take on leaders like PayPal.

The other issue is that Apple won’t allow users to pay for products or services with Apple Pay that it sees as direct competition. It has already been stated that rival cloud-based gaming services like Google Stadia won’t be covered, and this limits users greatly. It means that even people who like using Apple Pay will have to choose another payment system to have alongside it.

Apple Pay has a strong chance of becoming one of the world’s primary recognised payment platforms, but it won’t beat its rivals if it sticks solely to Apple devices. It will also find it hard to compete against the growing cryptocurrency market. This may be all the company desires, though, as it continues to grow its list of integrated services.

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