We Spent Around $20 Billion Using Apple Pay Last Year

Just a thought.

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:

It takes:

  • $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.

Jonny Evans

Watching Apple since 1999. I don't say what they should do. I say what they might do. They sometimes do.

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