Why Did Apple Delay Opening Its Payment Service? Its Annual Service Fee Income Exceeds $1 Billion

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Apple was sued by the European Union for monopoly because it did not open the iPhone's "tap to pay" function to third-party payment services. Famous reporter mark gurman said in his latest issue of "power on" on Sunday that Apple reserved the click payment function to its own Apple pay service to protect its revenue.

According to Apple According to the current policy, third-party payment services PayPal, square and financial institutions such as chase, Citigroup and American Express cannot launch click payment [iPhone] with their own functions and interfaces( https://apple.pvxt.net/c/1251234/435400/7639?u=https%3A%2F%2Fwww.apple.com%2Fcn%2Fiphone%2F ) Application. This also means that if they want to reach the iPhone user base, they must pay up to 0.15% for each apple pay credit card transaction.

Gulman said that one of the reasons why Apple is unwilling to open the click payment function to third-party applications is revenue. Today, sales of Apple pay and other financial services account for only a small part of Apple's services business. He estimates that Apple pay's annual service fee income is more than $1 billion. In contrast, apple currently receives nearly $20 billion in revenue from its overall services every quarter. Although $1 billion a year seems small for apple, it may determine whether the service sector can achieve its annual growth target.

Moreover, Apple's bigger concern is future revenue. Visa said earlier this year that 20% of its transactions in the United States were contactless. Imagine what this ratio will look like in three, five or 10 years. If Apple allows third-party applications to use click payment today, the current impact may be only hundreds of millions of dollars. But in the future? It could be billions of dollars.

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