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Paze could therefore cut into the market share of other digital wallets like Apple Pay or PayPal. Paze鈥檚 features will also likely become the new norm among wallets, forcing competitors to innovate to keep up. Our take: While Paze鈥檚 rollout is taking longer than we anticipated, its impact on the industry will still be impressive. It will become a fierce new competitor for Apple Pay and PayPal.

The complaint alleges that Visa feared that digital platforms like Apple Pay, PayPal, Square, and Cash App had 鈥渘etwork ambitions鈥� that could disintermediate the payments network. Visa saw Apple Pay, specifically, as an 鈥渆xistential threat鈥� to its debit business.

Their digital fluency means they prioritize a good app experience that includes popular payment methods like Venmo, PayPal, and Apple Pay. Educate Gen Zers about the purpose of insurance. Only 26% of Gen Zers have functional knowledge about the value of insurance, per a January 2023 TIAA Institute survey.

PayPal鈥檚 share of older digital payment app users is especially higher than other apps, like Apple Pay or Venmo: 87% of Gen X respondents use PayPal, but just 16% use Apple Pay, according to the survey.

While it鈥檚 late to a game dominated by Apple Pay, PayPal, and Venmo, Paze will quickly build a foundation that poses a threat. Onboarding is backed by bank issuers. Paze can access over 150 million consumer credit and debit cards held by the seven banks that own it.

For example, PayPal added Apple Pay and Google Wallet support for its credit and debit cards. Amazon is partnering with one of Amazon Pay鈥檚 direct competitors. But given that PayPal is not a retail ecommerce marketplace, it likely feels comfortable bringing it in.

And it can help sway Apple Pay users to make the switch to Google, especially when Apple opens up its NFC tech and lets iPhone users switch their default mobile wallet.

And Visa recently started letting financial institutions add virtual cards to employees鈥� digital wallets like Apple Pay. Wire and other payments will stay flat this year, but change could be on the horizon. In addition to wire payments, this segment includes real-time, cryptocurrency, and other digital payments that aren鈥檛 check, cash, ACH, or card.

For example, Apple recently opened up its NFC tech to third-party mobile wallets, and last year, PayPal added Apple Pay as a payment option for its Advanced Checkout.

This feature will help Venmo catch up to other P2P apps and bring in more frequent users.

TikTok Shop鈥檚 in-app experience includes secure and integrated payment options like Apple Pay for seamless checkout. Additionally, TikTok鈥檚 expansion into fulfillment services aims to improve delivery speeds. TikTok鈥檚 holiday promotions will give livestream sales a boost.

But Apple Pay Later could turn the playing field upside down. The full launch of Apple Pay Later can draw from 130.1 million iPhone users, 55.8 million Apple Pay users, and best-in-class user experience that blends shopping, banking, and more. Its entry would likely dampen BNPL growth prospects for Klarna, Afterpay, and PayPal鈥攁nd spell doom for BNPL providers lacking broad wallet ecosystems.

Apple Pay adoption among the Apple faithful offers a master class on brand loyalty. By 2017鈥攖hree years after Apple Pay launched, which allowed Apple Wallet (then called Apple Passbook) users to pay at retailers via their iPhones鈥�17.1% of iOS users were using it to make payments, per our forecast. That same year, Apple Pay Cash (later renamed Apple Cash) brought peer-to-peer functionality to Wallet.

Further integration of digital proximity payments, including Apple Pay and buy now, pay later (BNPL), along with cashierless checkout, will make transacting easier. The digitization of the store will bring the best aspects of ecommerce into physical retail. Physical retail must adapt to intensifying competition from ecommerce.

Its dominance will only get bigger, with the number of Apple Pay users rising at a 5.6% CAGR through 2027. Apple Pay benefits most from its expanding financial services ecosystem. Apple Card鈥檚 2019 debut was complemented by two splashy 2023 launches: Apple Pay Later and a high-yield savings account, which attracted nearly $1 billion in deposits in just four days, according to a recent Forbes report.

I have to imagine that one is like Apple Pay. Jeremy Goldman (09:55):. Absolutely. Anything that is going to lead to less clicks and less typing, that should ultimately be your goal. Sarah Marzano (10:03):. There's a few that shock me when I see some retailers do them and then, some retailers seemingly choosing not to, things like let me enter my zip code and then, guess what?

Apple Pay will beat Google Pay and PayPal to win the Gen Z prize. A third of Gen Zers will use Apple Pay monthly this year, up from 23% in 2022. High iPhone penetration among this age group helps, as will the expected debut of Apple Pay Later. Sources. American Banker. Axios. Congress.gov. Consumer Financial Protection Bureau. Federal Reserve Bank Services. FIS. Fox Business.

Our take: Given Apple鈥檚 extremely loyal base of customers and the near decade it had to entrench Apple Pay habits, this likely wouldn鈥檛 impact Apple Pay too severely. Getting consumers to change their habits without proper incentives will be very hard for other mobile wallets to pull off.

Apple is also rolling out its BNPL offering Apple Pay Later. The solution is currently on an invite-only basis, but we expect a full launch this summer. Digging deeper: Read our report on Apple Pay Later to discover how BNPL users may greet Apple鈥檚 upcoming product.

That should help growth: We expect 45.8% of iOS users to transact with Apple Pay in 2023, per our forecast. The bigger picture:. Apple Pay can attract new users with its expanding financial services ecosystem, which includes Apple Card, Apple Pay Later, and a high-yield savings account.

It builds on Apple鈥檚 growing reach in financial services鈥攊ncluding through the launch of Apple Savings and Apple Pay Later. What鈥檚 next? A US launch should follow shortly. Discover partnered with Apple last month to bring its card balances and transaction history to the wallet in the US.

What we鈥檝e been thinking: Apple鈥檚 various financial services offerings鈥擜pple Savings, Apple Pay, Apple Pay Later, the Apple Card, and more鈥攔epresent aspects of a lifestyle marketing campaign, targeting a particular customer segment, rather than the more usual product-by-product competition fintechs enter into with traditional financial institutions (FIs).

Apple Pay added new markets, including Qatar and Malaysia. And it鈥檚 still growing domestically as consumers embrace digital wallets over physical cards: We expect 105.9 million people in the US will use Apple Pay next year鈥攁 6.2% jump year over year, per Insider Intelligence forecasts.