Do not look back at PayPal; Apple Pay wins on you

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Apple's Services business generated record sales of $ 11.5 billion in its third fiscal quarter. It is the second largest unit of Apple and its most profitable. Apple Pay is one of the companies in this segment. This is Apple's mobile payment system and the company takes 0.15% of the value of each transaction made on the platform. For example, if someone with a compatible device (iPhone 6 and later, iPad Air and later, Mac with Touch ID and all Apple Watches models) uses the system to make a purchase of 100 USD, the company levies 15 cents. This might not seem like a lot of money, but multiply that by the number of monthly transactions using Apple Pay and you can see how much this can be a lucrative business for Apple.
So, how many transactions a month involve Apple Pay? The technology technician said when calling the results today that his payment platform was used for nearly one billion purchases every month. And that equates to almost doubling the number of monthly transactions Apple Pay has participated in last year. According to CEO Tim Cook, "Based on June's performance, Apple Pay is now adding more new users than PayPal and the monthly transaction volume is growing four times faster." During the quarter, Apple Pay was deployed in 17 new countries and is now available across the European Union. Cook says the service can be found in 47 markets.

Apple targets $ 50 billion in services revenue for 2020

Apple is also expanding the number of transit systems that use Apple Pay. He has already added support to TriMet, Portland's public transit system, and has begun to support the mbadive transit system in New York. Later this year, Chicago residents will be able to use the system to cover their fares on their daily commute.

"In the United States, in addition to the successful integration of the Portland transit system in May, we begin the New York Transit deployment and we will launch in Chicago later this year." In China, Apple Pay launched the map As already mentioned, integrating public transit is one of the main drivers for adopting a broader digital portfolio, and we will continue to build on this momentum to help users to leave their wallet at home longer … more instances. "- Tim Cook, CEO, Apple

After Apple 's iPhone shipments worldwide reached 231.22 million units in 2015, the manufacturer decided the following year to focus on its Services unit. It was a good idea because a lot of the revenue from this segment is recurrent, such as the Apple Music Subscriptions and Apple News + (and soon, Apple Arcade). AppleCare, iCloud, the App Store and much more. The company has set a goal of reaching a $ 50 billion business figure in services for 2020, double the amount obtained in 2016. Apple depends on the number of active iPhone units (900 million at the beginning of this year). As a result, the growth of shipments is an advantage, but it is not as important. Based on the company's third quarter financial report, the Services business currently generates $ 46 billion in revenue annually. However, $ 50 billion in gross revenue next year can be achieved if Apple Pay and Apple Music continue to grow and Apple Arcade captivates the imagination of mobile gaming players.

In total, Apple announced a turnover of 53.81 billion dollars in the third quarter, against 53.27 billion dollars. Net profits rose from $ 11.52 billion in the same period last year to $ 10.04 billion. Earnings per share increased from $ 2.34 to $ 2.18 in the 2018 quarter.

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