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TWO Reasons Apple Pay is about to take Europe by storm
Apple’s mobile payment system is already a huge success in the U.S.
Apple CEO, Tim Cook, said more than 750 banks and financial institutions have signed up to bring Apple Pay to their customers.
And $2 out of every $3 spent on contactless purchases in the U.S. are done through Apple Pay.
“With all of this momentum in the early days, we are more convinced than ever that 2015 will be the year of Apple Pay.” - Tim Cook, Apple CEO
And he’s probably right.
VISA just announced it’s European contactless payment terminals will support tokenization by mid-April.
This is the type of secure system Apple Pay uses for its payment process.
Which is important for two reasons:
First, VISA has more than 1.5 million contactless payment terminals that are ready for mobile payments.
With the success of Apple Pay in the U.S., VISA knows these terminals could be a catalyst for Apple Pay in Europe.
The company’s even called Apple Pay a “critical piece” of the mobile payments puzzle.
But that’s not all.
Europe has been using contactless payment systems for years.
Which means it’s even more ready than the U.S. for more mobile payment adoption.
And it’s coming at just the right time.
Use of near-field communication, the wireless connection used for Apple Pay, is skyrocketing.
Source: Juniper Research. Mobile NFC Users Worldwide(in millions)
Which means that banks, financial institutions, and retailers have a big incentive to adopt NFC technology.
Here’s why that’s good for Apple…
Apple Pay is all about making the company’s devices even more desirable and indispensible.
In its most recent quarter, Apple sold 74.5 million iPhones.
While Apple Pay is just one feature out of many, it should help fuel incremental sales in Europe once it’s up and running.
“We believe Apple Pay was the most important announcement from Apple’s 9/9 event and view Apple Pay as potentially the most important Internet service introduced by Apple since iTunes.” - Gene Munster, Piper Jaffray
That’s a bold statement. But with the success of the iPhone so far, and the U.S. adoption of Apple Pay to date…
It appears Apple’s payment system is poised to take Europe by storm.
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