Investment bank Cowen forecasts that Apple’s payment services, like Apple Pay, are well-positioned to take advantage of the growing fintech and retail markets.
In a note to investors seen by AppleInsider, lead analyst Krish Sankar notes that Apple’s digital payment platforms are a “fast growing but underrated part” of the company’s services business. The category includes Apple Pay, Apple Card, and Apple Pay Cash.
All three payment services have, collectively, shown growth of around 100% year-over-year, the analayst said. The ongoing coronavirus pandemic also appears to have accelerated growth and adoption of the financial technology (fintech) services.
“While Apple has portrayed these digital services as complementary to its mobile hardware platforms, we believe future scaling out of these services globally coupled with increasing depth and sophistication of them could position Apple as an emerging contender in the fintech space,” Sankar writes.
Within Apple’s fintech segment, the analyst expects Apple Pay to remain the cornerstone. The platform could see increasing acceptance at U.S. retailers, and Sankar predicts that the contactless payment service will be the largest revenue driver over the next few years, with an expected $800 million in growth annually.
Sankar sees Apple Pay growing at an 18% compound annual growth rate (CAGR) through 2023, and markets such as Asia and Europe could allow for even further expansion.
The Apple Card, largely off to a slower-than-expected start, could take over as Apple’s primary fintech growth driver after 2023. Cowen predicts that Apple Card could grow at an 89% CAGR to $1.2 billion by 2023, based on a “conservative 2-3% penetration rate into digital-based global retail spending.”
The analyst said he believes Apple receives a 1% fee for all transactions made with Apple Card. That’s in-like with other card issuers, but could end up “the most lucrative opportunity longer-term compared
IDEMIA Launches its Global Fintech Accelerator Card Program to Support FinTechs and Neobanks in Their Card Issuance Process
IDEMIA, the global leader in Augmented Identity, helps FinTechs launch card programs rapidly with the IDEMIA Fintech Accelerator Card Program, a dedicated program from onboarding to card issuance.
In the context of a rapid transformation of the banking industry, IDEMIA, the global leader in Augmented Identity, supports FinTechs and neobanks with the launch of the Global Fintech Accelerator Card Program. This new program allows a rapid process from cardholder onboarding – to card issuance.
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IDEMIA’s leadership in card manufacturing, as the number 1 global FinTech card issuance partner, is based on a solid experience of a global dedicated FinTech team and a network of 30 Service Centers in 26 countries around the world. FinTechs can leverage the capability and know-how of IDEMIA to enable card issuance into the marketplace anywhere in the world.
Over the years, IDEMIA has built the largest world wide network of personalization centers designed to optimize responsiveness and proximity to the cardholder for fast delivery times. All of the 30 Service Centers are supported by a Common Personalization System (CPS) that allows card profile developments to be instantly and securely transferred and re-used in any one of them, helping globally aspiring Fintechs to expand rapidly. In addition to CPS, all IDEMIA sites are inter-connected via the IDEMIA Hub with a connection to almost all local and global card processors and BaaS providers so that services and solutions can be safely replicated, extended, shared and optimized across the world.
The IDEMIA FinTech Accelerator CardProgram benefits from dedicated local, regional and global FinTech teams that are trained to help to create a card product that will ensure FInTechs can fully differentiate their product in the marketplace. Before manufacturing the cards, the needs of various