Apple Pay is a mobile and online payment and transaction service-providing platform. Tech giant brand Apple founded the online mobile payment platform in 2014. Today, we’ll discuss the SWOT analysis of Apple Pay; it outlines strengths and weaknesses; opportunities, and threats that the company has to face; as a business strategy analysis example company.
Services portfolio of Apple Pay
- Multiple device compatibility
- EMV Payment Token specification technology
- Two-factor authentication
- Contract-less payment capability
- Secure transaction
Statistical facts and figures of Apple Pay
- User Network – 45.4 million
- Global market reach – 76 countries
- Annual revenue – 1.9 billion USD (2022)
- Annula Transactions – 6 trillions
- US Market share – 92%
Competitors of Apple Pay
- Bolt
- Skrill
- Square Payment
- Authorize.net
- GoCardless
- Paytm Business
- Payoneer
- PayPal
- Stripe Connect
The SWOT analysis of Apple Pay would analyze the internal strengths and weaknesses of the company; and the external opportunities and threats that the brand has to face. Here’s Apple Pay SWOT analysis as a business strategy analysis example company as follows;
Strengths of Apple Pay
Some of the main internal strengths in the Apple Pay SWOT analysis example company as business strategy analysis are as follows;
Large Market Share
According to an estimate, Apple Pay has a dominant market share of 92% in the US banking industry by performing 6 trillion transactions annually. The dominant market share in the US market further strengthens the company’s brand positioning and influence in the tech industry.
Secure Transaction
Apple Pay is the safest form of transaction than debit, prepaid, or credit cards. This is because it doesn’t share the user card number information with the store or merchant. In fact, the company doesn’t keep a record of debit and credit card payers that would link them back to their account address. It only employs the touch and face ID of the iPhone users to perform the transaction, instead of sharing the information with the merchant.
Works with All Banks
Apple Pay works perfectly fine with almost all types of banking debit, credit, and prepaid cards. Customers and users don’t have to worry about integrating their cards with the platform. However, if the card links with the platform; the banking helpline would guide the method of linking and integrating it with the mobile payment platform.
Free Transaction
Apple Pay doesn’t charge any fee for performing transactions from customers. The free-of-cost transaction with complete data and privacy security helps the company to attract new potential users and retain the existing ones. The proven track record and tech influence would help the company to earn the trust and confidence of users.
Worldwide Network
Apple Pay is currently offering its online and mobile payment transaction services in over 76 countries across the world. It shows the vast customer market reach in the mobile transaction industry.
Advanced Technology
In order to user privacy and data; Apple Pay employs the contactless payment method and advanced EMV payment tokenization specification technology. The company further says that it won’t track the payer or the usage of the users. The transaction would remain a secret between the payer, payee, and the bank; and not the platform. It shows a great commitment of the company to privacy.
Weaknesses of Apple Pay
Some of the main internal weaknesses in the Apple Pay SWOT analysis example company as business strategy analysis are as follows;
Over-Reliance on the US Market
Apple Pay is heavily relying on the US market as its main source of revenue-generating user market. It is no doubt, the mobile transaction platform has a dominant market share in the US. However, over-reliance on one market is not a good marketing and business strategy.
EMV Transaction
The contactless EMV mode of transaction doesn’t work in various places across the US and worldwide. The user would receive the error of “failed transaction,” and it shows the limitations of the company’s online payment platforms.
Opportunities for Apple Pay
Some of the main available opportunities in the Apple Pay SWOT analysis example company as business strategy analysis are as follows;
Market Expansion
The global market holds significant growth potential; Apple Pay should expand its business into various new markets and countries across the world. In fact, developing countries would welcome the contactless payment transaction platform of the tech giant company.
Strategic Alliance
Apple Pay should develop a strategic alliance with various banks and financial service-providing institutions. It allows the company to increase the acceptability of its EMV mode of transactions in different places.
Research & Development
Technological Innovation is the key to growth and development in today’s marketplace. Apple Pay has established a strong market reputation by providing quality services, secure transactions, and data privacy protection. Consistency in service would help the tech brand to maintain its reputation.
Threats to Apple Pay
Some of the main potential threats in the Apple Pay SWOT analysis example company as business strategy analysis are as follows;
Competition
The online payment service-providing market has become highly competitive. PayPal, Payoneer, and Skrill are the top competitors of the company in the online payment and mobile transaction industry. They put great pressure on the company to further strengthen its platform and service.
Data Privacy Regulation
The consumer market and the world’s governments have become highly careful about the privacy of their data and their transaction data. They have developed strict laws and regulations to ensure individual data privacy and safety. It becomes highly difficult for the company to remain profitable while complying with legal regulations and requirements.
Conclusion: Apple Pay SWOT Analysis Example Company |SWOT Analysis of Apple Pay |Business Strategy Analysis
After an in-depth study of the swot analysis of Apple Pay; we have realized that Apple Pay is the world’s leading online and mobile transaction-providing platform. If you are learning about Apple Pay SWOT analysis example company; then you should keep in mind the abovementioned internal strengths and weaknesses; external opportunities and threats as brand strategy analysis.
Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. Other than that, he’s a fun loving person.
