Apple CEO: Apple Pay’s Convenience Drives Record Payment Services Revenue

The convenience of Apple Pay and the addition of new products helped Apple set an all-time revenue record in the payment services category during the second quarter.

This achievement came during a quarter in which the tech giant also set a record in its total services segment, Apple reported Thursday (Aug. 3) during its quarterly earnings call.

“Since we introduced Apple Pay almost a decade ago, customers have been loving how easy it is to make purchases online, in apps and in stores,” Apple CEO Tim Cook said during the call. “We’re also pleased to see Apple Card build on the success of Apple Pay.”

Apple Card has become one of the most successful credit card programs in the United States and has achieved award-winning customer satisfaction, Cook said.

The Apple Card offering was supplemented this spring with a high-yield savings account, and that new product has seen customers make more than $10 billion in deposits, Cook said.

The Apple Card’s Savings account, which is powered by Goldman Sachs, surpassed the $10 billion milestone Wednesday (Aug. 2), about four months after its launch in April. The account can be set up and managed directly from the Apple Card in Wallet.

Apple Pay leads all other mobile wallets in terms of share of consumers’ most recent mobile wallet transactions, according to the PYMNTS report “Apple Pay at 8: Connected-Tech Consumers Lead The Way.”

Apple’s 8.2% growth in service-related sales during the second quarter shows that its push to become a service-centered ecosystem continues apace. This growth occurred even as Apple’s revenue from hardware declined by 4.7%.

Apple said it expects both its payment services category and its total service to continue to grow through the current quarter ending in September, driven in part by customers’ high level of engagement in the Apple ecosystem, Apple Senior Vice President and Chief Financial Officer Luca Maestri said during the earnings call.

“It goes from the fact that our installed base continues to grow, so we’ve got a larger pool of customers, to the fact that our customers are more engaged as we have more transacting accounts and paid accounts on the ecosystem,” Maestri said.

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