Last night, Apple's Tim Cook had a swipe at rivals to his company's new Apple Pay payment system, saying that many had "started by focusing on a business model that was centered on their own self-interest instead of focusing on the user experience." It would be naive to think Apple's new system was purely for the good of mankind of course, but considering Cook's statement, it may come as a shock just how much the Cupertino company looks to bag from its new venture.
According to Bloomberg (speaking to three sources "with knowledge of the arrangement" Apple has made with US banks), Apple could look to take a substantial cut of the $40 billion dollars that US banks make from so-called credit card "swipe fees". While the sources couldn't pin down specific figures (it's believed that Apple has cut individual deals with each Apple Pay partner, and may earn a different commision based on the relative price of a transaction), the related banks are said to be happy with the arrangement as they expect mobile payments to skyrocket as a result of the feature.
Apple's set to take a big chunk of the pie, but that pie's set to get way bigger, with the mobile payments market estimated to be worth $90 billion by 2017, with those projections thanks in no small part to Apple's entry to the finance arena. [Bloomberg]