Statista and Morgan Stanley forecast Apple Pay could be worth $190 billion by 2022.
Specifically, Statista predicts Apple Pay will move $190 billion in the United States by 2021 and have 60 million users by 2020. In contrast, Apple Pay had 127 million users worldwide in 2018 and 38 million users in the US in 2017.
Notably, Morgan Stanley’s analysts think Apple Pay has “the best consumer penetration” among digital wallets on the market, Apple Insider reports. In addition, Morgan Stanley calls Apple Pay “the clear leader among app/phone-based digital wallets.”
Among other things, Morgan Stanley cites Apple (NASDAQ: AAPL) and Goldman Sachs (NYSE: GS) plans to launch an Apple Pay MasterCard as a source of value. Thus, Morgan Stanley’s analysts believe Apple Pay is the clear leader among American digital wallets.
Google Pay expands Integration with PayPal
Alphabet (NASDAQ: GOOGL) and PayPal (NASDAQ: PYPL) plan to disprove Morgan Stanley’s analysis.
PayPal is expanding its integration with Google Pay, TechCrunch reports. For instance, Google Pay customers now have access to PayPal’s Purchase Protection and Return Shipping Benefits.
In addition, Google Pay users can pay with PayPal in 24 countries.
Apple Pay Joins with Revolut
Apple is not standing still on the payments front. For instance, Revolut now supports Apple Pay in 16 European markets, TechCrunch reports.
Thus Apple Pay users in the UK, France, Poland, Germany, the Czech Republic, Spain, Italy, Switzerland, Ireland, Belgium, Austria, Sweden, Denmark, Norway, Finland, and Iceland can pay with Revolut.
Revolut is a British bank that operates more like a payment app than a traditional bank. For instance, Revolut users can do all their banking via the Revolut App or a plastic card.
Revolut is expanding fast, opening up shop in the USA, opening a tech hub in Berlin, and putting Goldman Sachs (NYSE: GS) veteran Michael Sherwood on its board. All of this is part of Revolut’s effort to become “the Amazon (NASDAQ: AMZN) of banking.”
However, only time will tell if Facebook’s (NASDAQ: FB) Project Libra, Ant Financial, PayPal, Goldman Sachs, Alphabet (NASDAQ: GOOG), or Apple Pay will become the Amazon of banking. Currently, my money is on PayPal but I would not count any of those other players out.