A worker demonstrates Apple Pay inside a mobile kiosk sponsored by Visa and Wells Fargo to demonstrate the new Apple Pay mobile payment system on October 20, 2014 in San Francisco City.
Apple CEO Tim Cook raved during the company's January earnings call with analysts that Apple Pay transactions more than doubled since previous year and have grown to surpass 15 billion transactions.
According to the research report, by 2024, Apple's global Apple Pay transactions will reach $686 billion.
Apple Pay will be responsible for 1-in-10 global card transactions by 2025 worth TRILLIONS of dollars per year and could even rival PayPal for online payments, researchers claim
This raises anti-trust concerns and could see regulators investigate the Apple Pay service more closely as it grows in popularity, a Quartz article reports. Some of its offerings within that Services bucket are seeing more success than others at the moment, such as Apple Pay.
With a network of millions of iPhone users and the ability to use the wallet to pay online or in stores, Bernstein says Apple is on track to dominate the market. Apple, in response to a request for comment from Business Insider, said that it prioritizes customer security and privacy and that allowing other payment processors to access NFC on its devices NFC could create a risk for users.
Visa and MasterCard handle more than $14 trillion in payments annually and as online and apps grow, people are using less cash and card more often.More news: Google gets in on the emoji mashup madness by launching 'Emoji Kitchen'
Research firm Bernstein compiled and projected the trend data. "There are indeed plenty of reasons to worry that Apple may attempt to disrupt the payments ecosystem", Bernstein analysts, led by Harshita Rawat, wrote in a research note. Apple Pay is one of these, a purchasing technology that uses traditional credit card mechanics in a modern way through utilizing powerful technology. Users can store their credit and debit cards in the electronic wallet and use it for contactless payments - backed by biometric security using technology near field communication actions (NFC) in the phone.
How does Apple make money from Apple Pay card transactions?
Apple faces competition in China from QR code-based mobile payment services from Chinese tech giants Alibaba and Tencent.More news: Roku Earnings Beats Estimates Thanks to the Streaming Wars
On the iPhoneX, users must press the sleep/wake button twice to invoke Apple Pay.
Apple Pay is the Apple's mobile payment and virtual wallet service. That's why Apple Pay is the only mobile wallet iPhone, which can conduct NFC transactions.
Like most card issuers, Apple takes a tiny percentage of each Apple Pay transaction, using it to boost its increasingly prominent services revenue.More news: Canada doesn't tell police what to do, Trudeau says of rail blockades