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    Apple Pay transactions up 500% year on year, CEO reports

    Apple Pay transactions have risen nearly 500% year on year, with more purchases made in September 2016 than during the whole fiscal year in 2015, Apple CEO Tim Cook has revealed during the company’s latest quarterly financial results call. The service will launch in Spain “in the next few months”.

    Apple CEO Tim Cook

    BULLISH: Tim Cook expects rapid adoption of Apple Pay in Japan

    Speaking the day after the mobile payments system went live in Japan, Cook says the company is “seeing very strong growth in transaction volume” for Apple Pay around the world, adding its major partners “tell us that Apple Pay shows the highest conversion rate of any digital wallet”.

    “Earlier this month, I visited Japan where Apple Pay went live yesterday. Japanese customers are already in the habit of making contactless payments where they commute, dine and shop and so we expect a strong response and rapid adoption of Apple Pay,” he says.

    “Around the world we’re seeing very strong growth in transaction volume through Apple Pay, which also launched in Russia and New Zealand this month and is coming to Spain in the next few months.

    “Apple Pay transactions were up nearly 500% year on year for the September quarter. In fact, we completed more transactions in the month of September than we did across all of fiscal 2015.

    “And with Apple Pay support now built into Safari, hundreds of thousands of websites are bringing Apple Pay to their customers. Our major partners tell us that Apple Pay shows the highest conversion rate of any digital wallet.”

    Earlier this month, Cook said he was planning to “pour further resources” into Apple Pay in Japan and across other Asian markets in an attempt to promote a cashless society.

    While Cook was bullish about the service’s success, the company is facing a challenge from four Australian banks, who are seeking greater powers of negotiation over the entry of third-party mobile wallets in the country.

    The banks have branded Apple’s claim that allowing access to the NFC technology within its iPhones would diminish the security of Apple Pay “completely baseless”.

    • William Hugh Murray, CISSP

      Those of us that use it value the convenience. I now make about half my payments with my watch. Acceptance is now widespread in my market. Widespread adoption seems inevitable.

      The brands need to think of themselves as in the transaction business and issuers in the credit business. Legacy cards may be around for another generation but their economic significance will rank with the penny.

      Think mobile, cardless, contactless, and (credit card account) numberless.

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