How Much Does Apple Pay Matter?

After

disappointed shareholders by announcing that the company's iPhone sales had finally begun to slow, many are looking to the firm's many other projects for any indication that the company can continue its rapid pace of growth. One of the firm's most talked about ventures has been Apple Pay— a way that iPhone users can make payments simply by using their phones. The system is said to be safer than paying by card and most expect that it will grow alongside the blossoming mobile payments space. But that being said, Apple Pay makes up a very small portion of Apple's bottom line, so it remains a question as to whether or not the system really matters.

Despite exponential growth in usage, Apple Pay probably brings in very little revenue for Apple. Although the company hasn't released its exact financial agreements regarding the service,

that the company makes about 0.15 percent on every transaction. That translates to a minuscule portion of the company's bottom line.

However, the benefits of Apple pay are more than just financial. The system creates another reason for customers to stick to Apple products. Most smartphone makers have come up with a rival system that allows their handsets to make payments, but the more people that become accustomed to Apple's system, the more likely they are to continue buying into the Apple ecosystem.

Another positive of the Apple pay system is convenience. Apple has been able to get more than 2 million retail locations on board and the payment system is also found in thousands of apps allowing for fast and easy checkouts. The more that Apple can integrate itself into the mobile payments space, the better it will be for iPhone sales as people will tend to gravitate toward the most convenient payment system as the technology becomes more popular.