Since its introduction in the U.S. at the end of 2014, Apple Pay has recorded a moderate, but steady growth: According to its own figures, around 350 million users in 35 markets now use the card-based payment service from Cupertino - since the end of 2018, Germany has also been one of these markets. The incredible success story is put into another perspective once you consider that already more than one billion new iPhones have been sold since the introduction of Apple Pay.
Card schemes enable simplified and guaranteed exchange of money between merchants, customers and their banks, by operating international networks and setting uniform standards. More specifically, they define rules for the routing of payment authorizations and settlement requests in point-of-sale and e-commerce transactions between merchant acquirers and card issuers, as well as ATM withdrawals or purchases with cashback transactions.
Retail banking is undergoing radical change. New players in the market and changes in the regulatory framework (e.g. PSD 2) mean that the market is being opened up as a result of market conditions and regulations, posing new challenges for traditional banks. Customer behaviour has also changed decisively. The willingness of customers to change accounts has doubled in the last four years, with the absolute number of accounts in the German market remaining constant over this period. The traditional instruments of financial institutions currently offer hardly any opportunities to react to the effects of this change.