We Spent Around $20 Billion Using Apple Pay Last Year
Amid the usual claims of slow uptake, Wall Street Journal claims Apple Pay made $30 million for Apple in its last financial year.
This begs the question: “If Apple Pay made $30 million for the company, then what’s the charge Apple makes?”
I’ve tried to figure this out.
Some reports claim Apple takes 15 cents out of every $100 of transactions. (That’s a percentage of 0.15 percent. Conspiracy buffs may want to divide 100 by 0.15 for the hilarity).
If this is true, then (please correct me if I’m wrong), then to make $30 million, Apple Pay must have been used to transact around $20 billion in purchases. It’s an approximate figure as we don’t really know what Apple’s slice of the transaction income is.
This is the logic:
- $100 of transactions for Apple to make $0.15
- $1,000 to make $1.50
- $10,000 is $15
- $100,000 is $150
- $1,000,000 is $1500
- $10,000,000 is $15,000
- $100,000,000 is $150,000
- $1,000,000,000 is $1,500,000
- $10,000,000,000 is $15,000,000
- $20,000,000,000 is $30,000,000
Given that in many markets there’s a ceiling on the maximum value of a cashless transaction (it’s £30/$40 in the UK, for example), then this indicates Apple Pay was used in a very large number of transactions.
This kind of demand for use of the service is only going to grow.