Apple Pay on the Verge of a Colossal Win
Apple Attacks PayPal
Apple recently announced that it has an install base of over one billion devices. While the hyper focus has been on the iPhone and slowing sales, what has not been followed closely enough is the tremendous opportunity Apple brings to shareholders with Apple Pay.
Apple has brought multiple disruptions to the payment world and it has its sights set to attack PayPal, right now. First some background and then the breaking news.
At Apple's worldwide developers conference (WWDC) the company announced that Apple Pay usage would be extended to its Safari mobile browser. This was expected, but nonetheless the official word was critical.
Now that Apple Pay is enabled in browsers, people can shop online with the iPhone and iPad. That may sound innocuous at first, but the implications are huge and it puts Apple Pay not only in the realm of mobile Pay, but now in the realm of payments processors, like PayPal.
APPLE PAY DISRUPTS
With a browser enabled payment system for Apple, we get this:
Apple's payment service [will allow] shoppers to complete a purchase on mobile apps with their fingerprint rather than by entering credit card details.
The move would pit Apple more directly against PayPal.
The move would pit Apple more directly against PayPal.
Yet more news broke that was not expected and it surrounded Apple Pay enabling on desktops and laptops. The functionality is simple -- use your fingerprint to pay. We have called it the password killer, but what it really does is attack PayPal, Visa and MasterCard.
With the rise of cybersecurity and cyberattacks leading to a host of problems, not the least of which is hacked passwords and identity theft, a "fingerprint and pay" methodology backed by a technology crown jewel like Apple is likely the new mode of operation for payments online -- the world just hasn't figured it out yet.
Just as Apple introduced the world to touch screens and smartphones with no keyboards, so Apple has done the same thing with Apple Pay and a fingerprint. Passwords and credit cards are archaic technologies, and now Apple is attacking PayPal and the rest of the technology slower firms. APPLE PAY : THIS IS QUITE BIG
Seventy per cent of e-commerce is done on non-mobile devices, meaning the desktop and laptop are still the heavyweights
Apple has created a payment ecosystem both for the 30% of transactions done on mobile devices, it has also extended its ecosystem to the rest of e-commerce done on non-mobile devices.
Apple's attack on PayPal is really quite simple: Apple has eliminated the password, identity theft, password theft, bumbling cyber security, the credit card, the PayPal account and everything else.
Of course, this all comes one back of one billion devices already in use, with people more than ready to use their fingerprint to pay.
BREAKING: APPLE ATTACKING PAYPAL
Barron's penned a note that disclosed the real trouble PayPal is now in:
Noting that roughly half of PayPal's top merchants will also use Apple Pay by then, Munster writes that as consumers encounter the Apple option, "when faced with identically sized buttons next to each other, we believe Apple Pay will begin taking share."
The sheer size of the just 'mobile pay' market will be absolutely explosive. Transaction volumes are projected to hit $700 billion in yearly sales by just 2020, according to a study by Statista:
Bank of America has projected transaction values will reach $3 trillion by 2022. But that's just mobile Pay (think, swipe your iPhone and pay) and Apple owns 65% of the market share for mobile Pay with the iPhone and iPad.
Apple is already the market leader in that space and now just added every kind of e-commerce transaction possible.
COMPETITION IS GETTING CRUSHED
While the press has covered Apple's faltering iPhone sales growth, the Pay realm is a totally different story. Growth for Apple has been explosive and the disruption it just brought is unmatched, and unmatchable.
Facebook is trying to needle its way into the pay worlds with Messenger, but so far it has not worked. Google's Android Pay is gaining ground based on its dominant market share of the smartphone market, but the curious thing about iPhones is that transactions of any type, whether they are apps or mobile Pay, just happen a lot more often for Apple users.
If we examine Visa, MasterCard and PayPal we see companies that have a combined market cap of over $300 billion and all of it is up for grabs with Apple Pay -- iPhone sales growth slowing or not.
WHY THIS MATTERS
While mobile pay is in the very early stages of massive adoption, there's one company that will win, no matter which of the tech giants ends up owning the space because it invented the technology behind it. In order to find the 'next Apple' or 'next Google,' we have to get ahead of the curve. This is what CML Pro does. Our research sits side-by-side with Goldman Sachs, Morgan Stanley and the rest on professional terminals, but we are the anti-institution and break the information advantage the top .1% have.
Each company in our 'Top Picks' is the single winner in an exploding thematic shift like artificial intelligence, Internet of Things, drones, biotech and more. In fact, here are just two of the trends that will radically affect the future that we are ahead of:
The Internet of Things (IoT) market will be measured in trillions of dollars as of next year. CML Pro has named the top two companies that will benefit. Then there's cyber security:
Market correction or not, recession or not, the growth in this area is a near certainty, even if projections come down, this is happening. CML Pro has named the single best cyber security stock to benefit from this theme.
These are just two of the themes we have identified and this is just one of the fantastic reports CML Pro members get along with all the visual tools, the precious few thematic top picks for 2016, research dossiers and alerts. For a limited time we are offering CML Pro at a 90% discount for $10/mo. with a lifetime guaranteed rate. Join Us: Get the most advanced premium research delivered to your inbox along with access to visual tools and data that until now has only been made available to the top 1%.
Thanks for reading, friends. The author is long shares of Apple.
Please read the legal disclaimers below and as always, remember, we are not making a recommendation or soliciting a sale or purchase of any security ever. We are not licensed to do so, and we wouldn’t do it even if we were. We're sharing my opinions, and provide you the power to be knowledgeable to make your own decisions.
Legal The information contained on this site is provided for general informational purposes, as a convenience to the readers. The materials are not a substitute for obtaining professional advice from a qualified person, firm or corporation. Consult the appropriate professional advisor for more complete and current information. Capital Market Laboratories ("The Company") does not engage in rendering any legal or professional services by placing these general informational materials on this website.
The Company specifically disclaims any liability, whether based in contract, tort, strict liability or otherwise, for any direct, indirect, incidental, consequential, or special damages arising out of or in any way connected with access to or use of the site, even if we have been advised of the possibility of such damages, including liability in connection with mistakes or omissions in, or delays in transmission of, information to or from the user, interruptions in telecommunications connections to the site or viruses.
The Company makes no representations or warranties about the accuracy or completeness of the information contained on this website. Any links provided to other server sites are offered as a matter of convenience and in no way are meant to imply that The Company endorses, sponsors, promotes or is affiliated with the owners of or participants in those sites, or endorse any information contained on those sites, unless expressly stated.