The news: Apple released a roundup of the updates to its payments business and other service upgrades in 2021.
What this means: The influx of mobile wallet offerings introduced in 2021 highlights Apple’s desire to encourage more iPhone users to adopt Apple Pay. Less than 40% of iPhone owners used Apple Pay last year, per calculations from our forecasts. Adding Wallet capabilities might convince users to give it a try.
At roughly 6.4 million cardholders as of May 2021, per Cornerstone Advisors, the Apple Card also has yet to grab a significant share of the US card space—despite boasting features like a tiered cash-back reward system and recently enabled dynamic CVV. The tight integration with the iPhone limits Apple Card’s addressable market to the roughly 60% of US consumers who own an iPhone. However, innovative card features might encourage more consumers to adopt the card—and use it with Apple Pay.
Looking ahead: Apple has big plans for 2022: Besides enabling Wallet support for state IDs and driver’s licenses, the tech giant may be developing other innovative features that can make its payments solutions more compelling.
Related content: Check out our “US Mobile Payments Forecast 2021” to learn more about Apple’s payments business and how it stacks up against other providers.
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