Apple Pay’s Q3 Earnings

Apple’s earnings for the third quarter amounted to being pleasantly surprised at receiving a “C-” instead of a “D.” The expectations were low, but since Apple surpassed them the investors were more than contented, and share prices rose.

Apple Pay continues to emerge in the merchant services industry as a payment method along with regular credit cards, debit cards, and checks. Apple Pay users have increased 450% year over year. With this increase and the rise in merchant services, using mobile payments as a payment method in addition to credit card processing is here to stay.

Currently there are 3 million retailers in the United States alone using Apple Pay, with 11 million retailers worldwide using it in addition to regular credit card processing, Pay Pal, etc.

Still, Apple should not count this as a huge win either in terms of their overall earnings. Apple’s bread and butter remains the iPhone, and with it continuing to decline in sales, it is like getting a grade of “C-” as stated above. To Apple’s credit, Mr. Cook has not indicated pure numbers offset due to the recent growth with their mobile payment feature and iPhone product decrease. Instead, Mr. Cook has stated that Apple Pay is a benefit for their customers.

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