2/14/2020
`
`Apple Inc.'s Apple Pay Volume Skyrockets 500% (AAPL) | InvestorPlace
`
`BREAKING NEWS
`
`4 Top Stock Trades for Tuesday: ROKU, CGC, SPCE, YETI >>>
`READ MORE
`
`Home / Market Insight, Financial Articles / Gadgets, Smartphones & Tech /
`
`Apple Inc.’s Apple Pay Volume
`Skyrockets 500% (AAPL)
`Mobile payment is becoming more popular and Apple Pay is killing it
`
`By Brad Moon, InvestorPlace Contributor Oct 26, 2016, 10:29 am EST
`
`One of the (few) bright spots in Apple Inc.’s (NASDAQ:AAPL) latest quarterly earnings
`report was Apple Pay.
`
`Transaction volume for Apple’s mobile payment
`solution were up a whopping 500% year-over-year.
`On the earnings call, CEO Tim Cook announced
`that the number of Apple Pay transactions in
`September alone exceeded the volume for all of
`2015.
`
`That’s good news. But better still is that Apple Pay
`could have a whole lot more runway left.
`
`Source: Apple
`
`Mobile Payments Are Gaining Acceptance. Apple Pay Is Gaining
`Ground.
`
`Go back several years, and mobile payments were a mess. Technology companies, cellular
`providers, financial institutions, credit card companies and retailers were all pushing the
`idea. But the landscape was littered with competing solutions, retailers were balking at the
`cost of installing terminals and confused consumers were avoiding the technology.
`
`In 2012, despite the growing number of competing services, U.S. consumers spent only $500
`million using mobile payments systems. And almost all of those transactions took place at
`Starbucks Corporation (NASDAQ:SBUX), using that company’s own mobile payment
`app.
`
`https://investorplace.com/2016/10/apple-inc-aapl-apple-pay-volume-iplace/
`
`1/4
`
`IPR2020-00019
`Fintiv EX2016 Page 1
`
`

`

`2/14/2020
`
`Apple Inc.'s Apple Pay Volume Skyrockets 500% (AAPL) | InvestorPlace
`With the launch of Apple Pay in late 2014, along with competing services like Samsung’s
`(OTCMKTS:SSNLF) Samsung Pay and Alphabet Inc’s (NASDAQ:GOOG,
`NASDAQ:GOOGL) Android Pay, mobile payments began to take off. In-store mobile
`payments tripled in volume in 2015 compared to the previous year, and are on track for a
`record 2016. Business Insider is predicting U.S. in-store mobile payment transactions will hit
`$75 billion this year, reaching $503 billion by 2020.
`
`AAPL has taken a lead in the U.S. with mobile payments. In June, Fortune reported Apple
`Pay accounts for three-fourths of all U.S. contactless payments.
`
`How Profitable is Apple Pay?
`
`AAPL collects a 0.15% transaction fee for every purchase made using Apple Pay. That works
`out to just 15 cents on every $100 spent. That seems trivial compared to the $400 or so in
`profit the company reaps from the sales of every iPhone 7. However, when you look at the big
`picture — the huge potential for mobile payments worldwide — the numbers can add up
`quickly.
`
`That $503 billion in U.S in-store payments in 2020 would represent more than $750 million
`in fees for AAPL if Apple Pay were used.
`
`7 BEST INCOME STOCKS FOR 2020
`
`That’s just the U.S., and just in-store. Worldwide mobile payments are expected to hit $620
`billion this year. And then there’s online shopping, where services like PayPal Holdings
`Inc (NASDAQ:PYPL) currently dominate.
`
`Apple didn’t break out Apple Pay revenue in its earnings report, but it falls under the
`Services segment. And Services saw revenue of $6.3 billion, up from $5 billion compared to
`the previous year.
`
`Apple Pay Has More Room for Growth
`
`Apple’s Pay’s 500% volume growth compared to last year is impressive. The fact that its
`mobile payment service saw more transactions in September than all of 2015, even more so.
`
`https://investorplace.com/2016/10/apple-inc-aapl-apple-pay-volume-iplace/
`
`2/4
`
`IPR2020-00019
`Fintiv EX2016 Page 2
`
`

`

`2/14/2020
`
`Apple Inc.'s Apple Pay Volume Skyrockets 500% (AAPL) | InvestorPlace
`The company’s recent move of adding Apple Pay support in Safari with the latest MacOS and
`iOS releases is a step that is likely to extend AAPL’s financial reach. It’s also expected to steal
`a chunk of business from PayPal as consumers shop online for Christmas gifts. Last year on
`Black Friday, over 27% of all online purchases on Black Friday came from iOS devices…
`
`Apple is also furiously expanding support for Apple Pay, rolling the service out to China,
`Canada and other countries in 2016. It has also continued to aggressively expand its network
`of participating retailers, banks and credit cards.
`
`Apple Pay may not have the sort of lead-up and excitement of a new iPhone launch, and it’s
`certainly nowhere near generating the same numbers. However, it’s proving to be an
`increasingly valuable product for AAPL. It provides recurring revenue the company can
`count on. That revenue stream has high growth potential, and once the initial agreement is
`made with a vendor, there’s little effort or expenditure required on Apple’s part to keep the
`money flowing.
`
`The latest earnings report show that while mobile payments have been an elusive pipe dream
`for many companies, AAPL is making it work, and in an increasingly big way.
`
`As of this writing, Brad Moon did not hold a position in any of the aforementioned
`securities.
`
`Man Who Recommended Apple for an Extraordinary 50,662% Gain Over
`Time… Spots the Next Big Thing
`
`Investing legend Louis Navellier believes a tiny company at the forefront of the 5G
`technology boom could be the “next Intel.”
`
`You’ll want to pay attention because he spotted Amazon before it shot up 3,972%... Intel
`before it shot up 12,815%... Netflix before it shot up 24,221%... and Apple before it shot up
`50,662%.
`
`Here’s why he believes this under-the-radar 5G stock could do the same.
`
`MORE FROM INVESTORPLACE
`
`STOCKS TO BUY
`7 Exciting Stocks to Buy for Aggressive Investors
`By Louis Navellier Feb 13, 2020
`
`STOCKS TO BUY
`3 Reasons NVDA Stock Will Beat the Coronavirus
`By Matt McCall and the InvestorPlace Research Staff Feb 14, 2020
`
`https://investorplace.com/2016/10/apple-inc-aapl-apple-pay-volume-iplace/
`
`3/4
`
`IPR2020-00019
`Fintiv EX2016 Page 3
`
`

`

`2/14/2020
`
`Apple Inc.'s Apple Pay Volume Skyrockets 500% (AAPL) | InvestorPlace
`
`STOCKS TO BUY
`6 Strong International Stocks to Buy for Impressive Returns
`By Neil George Feb 12, 2020
`
`SPONSORED HEADLINES
`
`
`
`
`
`Contact Us Help Employment
`
` Advertise With Us Disclosures & Disclaimers Privacy Policy Terms & Conditions
`
`Financial Market Data powered by FinancialContent Services, Inc. All rights reserved. Nasdaq quotes delayed at least 15 minutes, all others at least 20 minutes. Copyright
`© 2020 InvestorPlace Media, LLC. All rights reserved. 9201 Corporate Blvd, Suite 200, Rockville, MD 20850.
`
`https://investorplace.com/2016/10/apple-inc-aapl-apple-pay-volume-iplace/
`
`4/4
`
`IPR2020-00019
`Fintiv EX2016 Page 4
`
`