Apple Inc. (NASDAQ:AAPL) mobile payment system, Apple Pay, is a key element in the push to solidify the hold of the company’s ecosystem in the markets, Will Power said in an interview.
In an interview on CNBC, the Robert Baird senior analyst said that Apple Pay may be generating a “small sum” for the iPhone maker at the moment but the success the system is having is bolstering the strength of the company’s ecosystem.
“This is a key differentiator. You throw in Touc ID, you throw in Apple Pay [and] this is something that the Android ecosystem really has not produced in any successful way yet and this is what really continues the momentum for Apple,” Power told CNBC.
Apple Inc. (NASDAQ:AAPL) launched Apple Pay in September when it also debuted two versions of its latest smartphone, the iPhone 6 and iPhone 6 Plus.
When queried about reports that a third of all mobile payments in the United States are through Apple Pay, Power said that this is a truly big number. He also noted that his firm sees other anecdotal evidence that supports this claim.
Power said that Whole Foods Market, Inc. (NASDAQ:WFM) has said that they have seen a marked 400% increase in mobile payments after Apple Inc. (NASDAQ:AAPL) debuted its mobile payments system. Furthermore, Panera Bread Co (NASDAQ:PNRA) has also put out big numbers, Power added.
The senior analyst said that fortunately, there’s still a limited number of vendors supporting the Apple Inc. (NASDAQ:AAPL) payment system and Robert Baird sees the number of partner vendors to increase.
He added that over time, the payment system will be a more meaningful revenue generator for the consumer electronics giant.
David Einhorn’s Greenlight Capital, an institutional investing firm which has a large stake in Apple Inc. (NASDAQ:AAPL), ended 2014 with about 8.61 million shares in the company, down 7% quarter over quarter.
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