Why Apple Can Cash Out and Hit Jackpot on the Apple Pay

Which would you rather do? -pay your bills with a simple tap of the phone or swipe your credit card instead? If Apple is able to convince both sides of the payment market, meaning the customers and the vendors, Apple is set to gain tons of money from the trillion-dollar payment system market.

So how does Apple stand to gain profit? According to Seeking Alpha, annual credit card transactions reach about $4 trillion globally. It doesn't stop there because there is still a lot of room for growth in this sector.

It is believed that Apple's take home is $0.15 for every $100 dollars worth of transaction. For Apple, the key is in being able to make the general public patronize their payment system. Even just getting 1/5 of the market share would definitely give Apple leaps and bounds in new revenue sources.

Apple Pay may be another gold mine for Apple. However, much of its success will rely on infrastructure according to Forbes. The payment system has to be easy enough to use for the people to make the switch.

Speed is definitely a factor but it is not the only characteristic that users want. People have gotten used to perks. Loyalty points, rewards systems, rebates, and other potential freebies will play a big role in enticing customers. It also has to satisfy the vendors or retailers. It is pretty clear that these retailers will need new equipment or devices to be able to accept a new mode of payment.

If Apple Pay is willing to shoulder these new expenses, it will certainly be a plus factor. For the new platform to work even better, Apple Pay must not only work as a credit card, it should also function as a debit card, an installment card, a pre-paid card and maybe even a bank transfer tool. Last but not the least, safety and security has to be addressed. If Apple pay can provide the all-encompassing "peace of mind" that people need, then it can certainly pave the way for the success of this new platform.