https://dkgoelenkash.blogspot.com/2023/08/investing-scale-mindset-sense-of-risk.html
Alipay - Alibaba and eWTP needs a mention with a certain mention of PayPal Elon too! He exited Fintech too early ? Forced downgrade of Alipay Alibaba was wrong ? Alipay Alibaba was earliest ?
Is it about Number of Hooks ? Is it about WOW ? Is it About Brand Extension ? And then … Size and Scale ?
NFC and Fungibility was launched in 1990’s and early 2000. In India it was launched too around 2005 by a startup along with banks.
Process of growth and sustaining the challenges -
Wave 1 - emails , html pages with C, Foxpro, COBOL and mainframes 10 years - Few Laptops
Wave 2 - 1G and DOT COM BURST 5 years Growth of Laptops and drying of Gunds and startup’s
Wave 3 - 2G & 3G with New Phones, Speed, Screen, messaging, Palmtop and blackberry’s and evolution of commerce, media and information on laptop and phones.
Wave 4 - 4G & 5G with new technology speed and hardware scale , size , reach and business - virtual world.
Wave 5 - 5G , 6G and Satellite Internet leading to highest levels of standardisation, selective travel, miniaturisation, speed and virtualisation - only physical goods movement as logistics and highest degree of efficiency , reduced wastage and further increase in Life expectancy
World is becoming better place to live - What One Wants - Better & Longer life - give me more ?
World has moved from 2B people with 31 years of life expectancy in 1940-50’s to 8B people with 70+ years of life expectancy
Back in 2014 Apple made a bold bet on the mobile #payments market by launching Apple Pay. One that has certainly paid off. Let’s take a look.
Apple Pay is nothing more than a contactless payment method that works with Apple devices. It also works together with Apple Wallet (a digital wallet, i.e. an online version of a physical wallet) in a combination of tremendous potential:
— Nearly two thirds of #digital consumers globally make use of digital wallets for online or offline purchases (Euromonitor). Based on Juniper Research, the number of unique digital wallet users will exceed 4.4 billion globally by 2025
— Mobile payments will account together with A2A payments for around 48% of all electronic transactions by 2026, according to WorldPay
— In 2014 when Apple launched Apple Pay, the size of the global mobile payments market was just $0.5 trillion (Market Research Store). Fast forward to 2021 and the market had grown to $1.97 trillion with projections from Fortune Business Insights bringing the figure to $11.83 trillion in 2028 (annual growth of almost 30%)
To understand the market dynamics, Chinese SuperApps AliPay and WeChat, which are in certain ways an example of what Apple tries to achieve in the west, have today over 1 billion registered users each. Apple has managed within 8 years to exceed half a billion users (we need to take into account that Apple Pay has never managed to take off in China).
The reason why Apple has managed to be so successful is twofold:
— It is the first player that has managed to effectively bring together different stakeholders of the mobile payments’ ecosystem under one roof: credit card schemes, banks and merchants. Today Apple works with all 4 major card players (Visa, Mastercard, Discover, and American Express), has signed partnership deals with more than 5,000 banks globally and has onboarded thousands of retailers across 74 countries. It is indicative that in the US where it is dominant, 92% of all the mobile wallet payments done in 2020 were made via Apple Pay
— Its unique customer base has allowed Apple to build this #business on a global, large-scale base from day one by being able to address a pool of more than 1 billion iPhone active users globally or 1.8 billion active devices
Some months ago the news that Apple processed $6 trillion annually overpassing Mastercard was all over the internet, creating impressions that are however false. Even if the figure is correct, we have to remember that Apple transactions are at the end of the day Visa, Mastercard, Discover or American Express transactions. Apple Pay is only a bridge and not a new payment scheme.
Going forward digital wallets will not only continue to disrupt the world of payments but will also upend traditional #banking by replacing bank branches with mobile phones. Apple seems to have entered early on a game with huge potential.
Will Apple Become The Next J.P. Morgan?
📍$10 bn Deposits In 4 Months
Big News In The #Fintech world, Apple's high-yield Savings Account, in collaboration with Goldman Sachs, has attracted over $10 billion in deposits! A staggering 97% of users have chosen for their Daily Cash to be automatically deposited into their savings accounts. This blend of user-centric design and seamless integration has indubitably turned saving from a tedious task into a simple and automatic daily habit for many.
This compares to for instance Monzo Bank, a digital-only platform established in 2015, reported deposits around $6 billion USD in 2023. That Apple has surpassed this figure in a relatively short span showcases the immense potential of integrating finance with its broad ecosystem, setting the stage for a promising fintech future.
Apple's ethos has always been about innovation and creating products with the user's needs at the core. This philosophy carries over into their financial products, designed and developed with the goal of enhancing users' financial health.
The account, with a high-yield APY of 4.15%, managed by Goldman Sachs, and insured by the Federal Deposit Insurance Corporation (FDIC), embodies Apple's dedication to provide the best user experience while ensuring robust security. According to market rumours, Goldman Sachs might pull out- but the next bank or credit card is already waiting to step into this role.
📍$12 Trillion Opportunity
According to Boston Consulting Group (BCG), the financial services industry is one of the largest and most profitable segments of the global economy, $12.5 trillion in annual revenue pools and generating an estimated $2.3 trillion in annual net profits or additional value- with highest average profit margins across all industries at 18%. Clearly, Apple's foray into financial services isn't coincidental; the company is strategically positioning itself to claim a slice of this lucrative pie.
📍Apple's Journey To Become a #superapp
Since its pioneering steps with Apple Pay in 2014 and later, its payment subsidiary in 2017, Apple has gradually developed a comprehensive suite of financial services. The addition of the Savings Account is a critical milestone in this journey, bringing the company closer to its ambitious goal of providing a holistic financial services platform, seamlessly integrated into users' digital lifestyles.
As J.P. Morgan Chase's CEO, Jamie Dimon, has voiced, banks should be “scared“ of rivals like Apple and Walmart. Non-bank companies like Apple that provide innovative banking-type services to a vast customer base pose a significant challenge to traditional banking institutions. Dimon also warned not to push banks out of financial service business due to regulation as #bigtech will fill the void.
Would you use Apple beyond payments to safe & invest? Will Big Tech "Become Banks" without a license?
Mix of self and published views, information, educative, no commercial use.
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