Apple Pay gets a million new users a week but profit remains elusive

Apple's mobile payments service is popular with consumers and banks but the company has yet to find ways to make 'meaningful' money from it

The Apple Pay mobile payment service is signing up a millions of users but the service has yet to provide Apple with “meaningful” financial returns.

Speaking at the IT giant’s quarterly financial results announcement, CEO Tim Cook said Apple Pay currently gets over one million new users a week and there are now more than 10 million contactless reader terminals accepting Apple Pay globally.

But Apple CFO, Luca Maestri, said the service does not yet make much money – but that this could change. "Apple Pay doesn't provide a meaningful financial contribution at this point, but as we look at the amount of transactions going through Apple Pay now and think ahead to the long term, we think this could be an interesting business for us,” said Maestri.

Looking for new revenue streams is essential in the light of recent falls in revenue and profit. Apple posted a drop in sales and profits during its second quarter, with sales worth $50.55bn compare with $58bn in the same period the year before; and profit was  $10.51bn, compared with $13.56bn last year.

Apple Pay became available in the UK in July 2016, when users of Apple's iPhone 6 and iPhone 6 Plus were able to make contactless  payments  using their mobile phone. The payments app allows users to make payments by scanning their iPhones over contactless readers.

It will soon face direct competition in  the UK. Samsung Pay will be available in the UK later in 2016, while Google will make its Android Pay app available in the UK soon.

Mobile phone payments may become the main way to pay for sales in the UK, with one third (33%) of Brits believing more payments will be made using smartphones than by credit or debit cards by 2020, according to the Banking Moving Forward study released in 2015 by  Experian .

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