Apple Pay launch challenges Visa's dominance in digital payments
What happened
Apple Pay's launch is noted as competing with the Visa network. Visa Inc. is seeing growth from digital payments, but rising adjusted operating expenses, primarily due to marketing and personnel costs, grew 17% in fiscal Q3. While Visa's revenue rose 14%, adjusted earnings per share grew only 11%.
From insidermonkey.com
Why it matters
Digital wallet systems that move money directly between bank accounts could bypass card networks. This forces Visa Inc. to continually invest and provide reasons for banks and merchants to remain on its network.
From insidermonkey.com
Who's involved
- Apple Inc.Launching a competing digital payment system against established networks.
- Visa Inc.The established payment network facing competition and rising operational costs.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- ShopifySpeculative
Shopify might see lower processing costs if competition in payment rails increases.
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The entities involved
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Apple Inc.
American multinational technology company based in Cupertino, California
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Visa Inc.
American multinational financial services corporation