Apple Pay crossed one billion transactions in the quarter ending on June 30, CEO Tim Cook said on the Cupertino-based company’s earnings call yesterday.
That number, Cook said, represents three times the transaction number in the same quarter last year. Cook expects that volume to keep rising as the P2P feature is set to launch in the mobile-savvy market of Germany later this year.
“To put that tremendous growth into perspective, this past quarter, we completed more total transactions than great companies like Square and more mobile transactions than PayPal,” Cook said.
That is not necessarily true. In its 2Q earnings last week, PayPal revealed that it had 2.3 billion transactions during that period. And in terms of transaction volume, PayPal processed $139 billion, of which 39% came from its social P2P platform, Venmo.
Square has not yet reported its earnings. Bank-backed P2P service Zelle is currently at 100 million transactions, as of June 30. However, it processed over $25 billion in transactions. It is also important to note that Apple did not reveal its payment volume, only the number of transactions, which may not be the best way to measure the success of a P2P service.
Nevertheless, Cook is right in predicting that Apple Pay will become a significant contributor to the P2P landscape. A recent Juniper Research showed that contactless payments (cards, mobile, wearables, IoT) will cross $1 trillion this year and $2 trillion by 2020, representing 15% of total global POS transactions. The report mentions Apple Pay along with Google Pay and Samsung Pay as potential key players in this space.
Apple Pay is currently live in 24 markets across the world and has over 4,900 bank partners, according to the earnings call. Earlier this summer, Apple Pay went live in Brazil and will go live in Germany later this year.
On its U.S. growth strategy for the rest of the year, Cook said:
We’re excited to share that in the U.S., eBay is beginning to enable its sellers to accept Apple Pay and CVS Pharmacy and 7-Eleven will roll out Apple Pay acceptance in locations nationwide this fall. Transit is another important area of growth and Apple Pay can be used with iPhone and Apple Watch to quickly and conveniently ride public transit in 12 metropolitan areas. Apple Pay Cash, our peer-to-peer payment service, is already serving millions of customers across the U.S. less than eight months following its launch.
Apple did not disclose the number of users on Apple Pay, but Bank Innovation previously reported that Apple Pay had 86 million users back in November.