Payment services like Apple Pay and Apple Card could be the company’s next multi-billion-dollar businesses as the fintech sector grows. That’s according to a note to investors from Cowen analyst Krish Sankar, seen by AppleInsider.
“While Apple has portrayed these digital services as complementary to its mobile hardware platforms, we believe future scaling out of these services globally coupled with increasing depth and sophistication of them could position Apple as an emerging contender in the fintech space,” Sankar writes. Within Apple’s fintech segment, the analyst expects Apple Pay to remain the cornerstone. The platform could see increasing acceptance at U.S. retailers, and Sankar predicts that the contactless payment service will be the largest revenue driver over the next few years, with an expected $800 million in growth annually. Sankar sees Apple Pay growing at an 18% compound annual growth rate (CAGR) through 2023, and markets such as Asia and Europe could allow for even further expansion.
Check It Out: Apple Could Have Multi-billion-dollar Payment Businesses