Gene Munster: Apple Making Progress On Apple Pay The Start Of Something That's Going To Be Big

While most of the Street is focusing on the music service launched by Apple Inc. AAPL at its Worldwide Developers Conference, according to Piper Jaffray’s Gene Munster very few people are going to use that service and the focus should be on Apple Pay.

Munster was on CNBC Tuesday to explain why he thinks so.

Making Little Things Better

“There wasn’t any blockbuster announcement,” Munster began. “This is taking little things and making it better, for example predictive aspects of Siri and the digital assistant which is going to make our lives little bit better. They played up their music service a lot, but very few people are actually going to use that.”

He continued, “Apple Pay was one of the big takeaways, too. I mean, they are starting to make progress, I think this is negative for PayPal. This is the start of something that’s going to be big, the wallet for Apple for the next several years.”

Related Link: Apple Pay Exclusive Discounts Are 'Entirely Possible'

Apple Pay: More Progressive Product Down The Road

Munster was asked if he thinks Apple Pay is going to be big because more and more retailers seem to be adopting it. He replied, “They’ll sign up more retailers, but also the progression. They are laying the groundwork of a more progressive product down the road, for example peer-to-peer being able to share money with one another. Also being able to do other payments online.”

Continue To Gain Share

On his outlook for Apple’s stock going forward, Munster said, “We're at $163 our target and our belief is that they are going to continue to gain share over the next few quarters, which should move numbers higher, move the stock higher.”