Apple Pay is expanding at a ‘tremendous rate’ says Apple CEO

iPhone showing Apple Pay payment card

Among the less than positive news such as declining iPhone sales and more significantly, declining revenue for first time in over a decade, Tim Cook was very upbeat about Apple’s services, in particular Apple Pay.

He said the reach of the payment service “continues to expand” after the launch in China and the more recent roll out in Singapore.

Apple Pay has had a far tougher time than Tim Cook predicted when he predicted that 2015 would be “the year of Apple Pay”. Back in October, research from Phoenix Marketing International suggested that the payment service’s growth stagnated.

This has clearly been offset by key expansions but even then, there are some caveats. The expansion to Australia for example is not a runaway success given that only American Express cardholders can use the service since the Australian banks are resisting Apple, instead preferring to promote their own services.

 

1 million new Apple Pay users per week

“Apple Pay is growing at a tremendous rate”

Cook highlighted that the service is working with more than five times in transaction volume of a year ago and one million new users per week. However, no specific number was mentioned.

In the countries where Apple has been released, it works at 10 million contactless points, including 2.5 million in America alone.

Cook also mentioned further imminent expansions:

“More expansions of Apple Pay is coming soon”

 

Not a source of revenue…yet

Apple CFO Luca Maestri said that the service doesn’t “provide a meaningful financial contribution at this point.” However, he also pointed out that it may start doing so in the future.

 

Listen to the full quarterly update below.

applefinancialresults

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