Apple Pay is now used more than PayPal for in-store mobile purchases. Find out more. https://lnkd.in/dGn2Xj9p #applepay #investing #paypal #digitalpayments #stockmarketnews #fintech #unitedstates #businessnews #financialtechnology #onlineshopping #ecommerce
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Apple, once a player with its own BNPL service, has pivoted to become a facilitator. Meanwhile, traditional financial giants are stepping into the arena, challenging the fintech upstarts who pioneered the space. But here's the plot twist: It's not just about BNPL anymore. Companies like Affirm are dreaming bigger, aiming to become full-fledged payment networks. As Affirm's CEO, Max Levchin, boldly declared, "Five years from now, we have no intention of being the leader in BNPL. We intend to be the leader in payments." The numbers tell a compelling tale. Adobe Analytics reports that BNPL-financed ecommerce in the U.S. hit $25.9 billion in just the first four months of 2024, up 11.8% year-over-year. The projected total for 2024? A staggering $84.8 billion. From Klarna's potential IPO to PayPal's strategic shifts, from Afterpay's integration challenges to Zip's global focus, the BNPL narrative is far from over. Each player is writing its own chapter, adapting to consumer needs and market dynamics. Read Steve's full breakdown.
After Apple Bows Out, How Do the Remaining BNPL Players Shake Out?
thefinancialbrand.com
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Klarna's new credit card for the US is smarter than it looks. The temptation is to go "lol credit" - But its much more than a card that does installments. Here's what's up 👇 Canonical BNPL provider and anti-credit card advocate Klarna is launching a credit card. The twist? It uses installments by default, and users will get up to 10% cashback at select merchants. While this has been in Europe for some time, it now joins Robinhood and the Apple Card in major tech entries to credit cards. 🧠 Consumers love installments. This was a highly requested feature, Klarna is meeting demand. The sense of control from installments vs revolving credit is powerful. The lesson is anything that reduces the complexity of debt will do well. 🧠 They've incentivized early repayments. If customers pay back early, they pay 0%. The APR is 14.49% and up to 33.9% if someone wants to go over their installment period. If someone has a bad month, this could get expensive quickly, but it would no doubt print money for Klarna. But I like that the financial incentive is to pay back early. 🧠 The "pay" buttons are becoming ecosystems with BNPL and installments as a wedge. Affirm's debit card allows consumers to make purchases using the Affirm app and pay in installments. Apple gives this option too (but maxes out at 24.9%) 🧠 Every bank and merchant processor is launching installments, but few will be as successful at driving the checkout experience. Apple Pay, Affirm, and Klarna have built wrap-around "commerce" and delivery experiences that go much deeper than the installment itself. That's what re-activates users and brings them back to merchants. #fintech #banking #payments #bnpl
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Iconic credit card brands share a crowded stage with cryptocurrencies, digital wallets, and alternative payment schemes, each with its own value proposition and target demographic. Half of U.S. consumers use credit-card alternatives such as PayPal, Apple Pay, Venmo, and Cash App, according to Miles Tullo managing director of banking and payments at J.D. Power and author of its 2024 “Digital Wallet Satisfaction Study.” Tullo expects digital wallet platforms such as Apple Pay Later to continue scaling through diversified product and service offerings despite uneven merchant acceptance. “The Apple Pay Later user tends to be younger, more mass affluent, and financially healthier than other buy-now pay later-users,” he said, noting that Apple Pay Later is embedded in the Apple wallet, providing users with a single-access view of multiple transactions.
BNPL Competition Drives Wins for Merchants
https://www.practicalecommerce.com
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Building for an inclusive & sustainable future | Fintech Products & Strategy | Digital Banking | BNPL | Payments | Open Banking
The study found that, at the start of 2022, PayPal was retail customers’ digital wallet of choice, and it was not even close. However, in the time since, Apple Pay has taken the lead. The Apple-owned digital wallet briefly surpassed the former favorite online payments system in the first quarter of last year before falling behind again. However, as of the first quarter of this year, Apple is ahead, and in the second quarter, that lead only continued to widen. As of Q2, 12% of consumers had made their last retail purchase using a digital wallet. Roughly 6% had used Apple Pay, and 4% had used PayPal.
Apple Pay Overtakes PayPal as Favored In-Store Mobile Wallet
https://www.pymnts.com
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New Markets Director at Dateio | ex Wunderman | operating the largest European Card linked marketing platform
2️⃣.3️⃣ billion mobile wallets in the world, 5️⃣0️⃣7️⃣ million of which are Apple Pay. How does Apple make 💰on Apple Pay? First, let’s bring some context. While Apple Pay may be dominating the mobile wallet market, it is still a small-time player in the much bigger online payments market. To be precise only 6.21% accounts for Apple Pay. 56.55% of online payments are actually done through PayPal, 20.94% through Stripe and 3.26% through Google Pay Back to money making. It is crucial to define what fees are associated with the transaction. On a $100 purchase merchant gets paid out $97.66. The remaining $2.34 is called the Merchant Discount Rate (MDR) and this amount is split between all the involved parties in the background. - Issuer Bank - Consumer’s bank - Interchange fee ($1.80) - Payment Networks - e.g. Visa, Mastercard - Assessment Fee ($0.14) - Acquirer Bank - Merchant’s bank - Markup Fee ($0.4) Apple Pay is free to use for Consumers and Merchants, but It is the Issuer Bank that pays Apple 0.15% of the transaction, for any transactions that are done using Apple Pay. Thus on a $100 purchase, the issuer bank pays $0.15. Here are the big numbers - In 2022, Apple Pay produced a revenue of $1.9 billion (0.27% out of all Apple’s revenue). Apple Pay's 2023 revenue is expected to double to $4 billion. Fascinating numbers. And btw. Dateio CLO is compatible with Apple Pay 😉 Graphic credits – Linas Beliūnas #fintech #digitalbanking #payments #mobilewallets
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Iconic credit card brands share a crowded stage with cryptocurrencies, digital wallets, and alternative payment schemes, each with its own value proposition and target demographic. Half of U.S. consumers use credit-card alternatives such as PayPal, Apple Pay, Venmo, and Cash App, according to Miles Tullo, managing director of banking and payments at J.D. Power and author of its 2024 “Digital Wallet Satisfaction Study.” Tullo expects digital wallet platforms such as Apple Pay Later to continue scaling through diversified product and service offerings despite uneven merchant acceptance. “The Apple Pay Later user tends to be younger, more mass affluent, and financially healthier than other buy-now pay later-users,” he said, noting that Apple Pay Later is embedded in the Apple wallet, providing users with a single-access view of multiple transactions.
BNPL Competition Drives Wins for Merchants
https://www.practicalecommerce.com
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CFO | Finance Executive | FP&A | Treasury | Operations | ERP Systems | Digital Transformation | Process Optimization
https://lnkd.in/gCmgx_Em #retail #Apple #Applepay #Paypal #payments #creditcard #digitalwallets #mobilewallets #paymentintelligence Consumer preferences regarding digital wallet formats continue to ebb and flow with providers. Apple Pay continues to gain ground against PayPal with the continuing increase in the overall volume/adoption of mobile purchases.
Apple Pay Overtakes PayPal as Favored In-Store Mobile Wallet
https://www.pymnts.com
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Buy now, pay later is starting to cause headaches 😵💫 The BNPL market’s worth $𝟯𝟬𝟵𝗕 this year. And it’s growing 𝘧𝘢𝘴𝘵, with companies like PayPal, Apple, and banks joining in on the hype. This form of payment is attractive because it gives 𝗶𝗺𝗺𝗲𝗱𝗶𝗮𝘁𝗲 𝗴𝗿𝗮𝘁𝗶𝗳𝗶𝗰𝗮𝘁𝗶𝗼𝗻, 𝗶𝗻𝗰𝗿𝗲𝗮𝘀𝗲𝘀 𝗯𝘂𝘆𝗲𝗿 𝘀𝗽𝗲𝗻𝗱𝗶𝗻𝗴 𝗽𝗼𝘄𝗲𝗿, and is often 𝗶𝗻𝘁𝗲𝗿𝗲𝘀𝘁-𝗳𝗿𝗲𝗲. Many companies have seen their sales soar after introducing this payment option. But experts advise to proceed with caution. And data supports their opinion—𝟱𝟳% 𝗼𝗳 𝗨𝗦 𝗕𝗡𝗣𝗟 𝘂𝘀𝗲𝗿𝘀 𝗿𝗲𝗴𝗿𝗲𝘁𝘁𝗲𝗱 using the method to check out. Gen Z and Millenials are most likely to use this form of payment, and, on average, BNPL users owe $883. 💡 The takeaway 𝗙𝗿𝗼𝗺 𝗮 𝘀𝗲𝗹𝗹𝗲𝗿’𝘀 𝗽𝗲𝗿𝘀𝗽𝗲𝗰𝘁𝗶𝘃𝗲, 𝗕𝗡𝗣𝗟 𝗶𝘀 𝗮 𝗴𝗼𝗼𝗱 𝗼𝗽𝘁𝗶𝗼𝗻 𝘁𝗼 𝗼𝗳𝗳𝗲𝗿 𝘆𝗼𝘂𝗿 𝘀𝗵𝗼𝗽𝗽𝗲𝗿𝘀—many businesses report having more customers and an increase of the average purchase value. But be aware of the potential drawbacks this payment method has. #buynowpaylater
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I stumbled upon this interesting article which discusses PayPal's evolution from a frictionless online payment solution to a platform that now introduces notable friction compared to its competitors. In summary it describes how initially, #PayPal revolutionized online payments by simplifying and securing transactions, especially on eBay. However, with emerging alternatives like Apple Pay and Google Pay, PayPal's process, involving multiple steps and authentication, has become relatively cumbersome. This change in user experience is affecting PayPal's growth and market position, as reflected in their Q3 2023 earnings, with a decline in active users and slower growth in branded checkout volumes. I lked as the article emphasizes the importance of continuous innovation in the payments industry to stay relevant and user-friendly. Link to the full article here: https://lnkd.in/dtB_cxST
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☁ Product & Strategy, FinTech Leadership Executive, Advisor - BNPL 2.0 | Payments | Banks & Credit Unions
Why Apple Pay Later is Gaining Market Share So Quickly! Are you an FI wanting to offer BNPL to your accountholders? Let's chat about equipifi's native BNPL solution for Banks and Credit Unions. ✔️ ...Apple Pay Later available to millions of potential customers when it launched in March. That’s because Apple Pay Later can be used wherever Apple Pay is accepted, including over 85% of U.S. retailers... ✔️ The research also suggests that Apple may be attracting first-time customers who otherwise may never have considered BNPL as their preferred payment method. https://lnkd.in/eP68ffpN #buynowpaylater #bnpl #equipifi #startup #fintech #innovation #digitalpayments #installmentloans #banks #creditunions #communitybank #microfinance #applepaylater #affirm #klarna #afterpay #paypal #googlepay #zilch #splitit #goldmansachs Banking and Payments Intelligence Report | July 2023
Why Apple Pay Later is Gaining Market Share So Quickly—And Who Should be Concerned
jdpower.com
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