Apple Card, Apple Pay could be Apple’s next multi-billion dollar businesses

Investment bank Cowen forecasts that Apple’s payment services, like Apple Pay, are well-positioned to take advantage of the growing fintech and retail markets.

In a note to investors seen by AppleInsider, lead analyst Krish Sankar notes that Apple’s digital payment platforms are a “fast growing but underrated part” of the company’s services business. The category includes Apple Pay, Apple Card, and Apple Pay Cash.

All three payment services have, collectively, shown growth of around 100% year-over-year, the analayst said. The ongoing coronavirus pandemic also appears to have accelerated growth and adoption of the financial technology (fintech) services.

“While Apple has portrayed these digital services as complementary to its mobile hardware platforms, we believe future scaling out of these services globally coupled with increasing depth and sophistication of them could position Apple as an emerging contender in the fintech space,” Sankar writes.

Within Apple’s fintech segment, the analyst expects Apple Pay to remain the cornerstone. The platform could see increasing acceptance at U.S. retailers, and Sankar predicts that the contactless payment service will be the largest revenue driver over the next few years, with an expected $800 million in growth annually.

Sankar sees Apple Pay growing at an 18% compound annual growth rate (CAGR) through 2023, and markets such as Asia and Europe could allow for even further expansion.

The Apple Card, largely off to a slower-than-expected start, could take over as Apple’s primary fintech growth driver after 2023. Cowen predicts that Apple Card could grow at an 89% CAGR to $1.2 billion by 2023, based on a “conservative 2-3% penetration rate into digital-based global retail spending.”

The analyst said he believes Apple receives a 1% fee for all transactions made with Apple Card. That’s in-like with other card issuers, but could end up “the most lucrative opportunity longer-term compared

This multimillion dollar CA ballot measure could decide the future of gig work

Sam Harnett:

Absolutely. So, you know, this the issue that’s playing out in California over where, how to classify these drivers is playing out in every other state in the country and actually global and different in different countries around the world. So everyone is looking to California to see what’s going to happen.

Now, the thing is that the way the propositions were written is that it only applies to people working on platforms, doing delivery or transportation companies like Uber, Lyft, also Postmates, DoorDash.

So it’s limited in who it’s targeting now. But if you create this precedent of having a basic third option between employee and contractor, this kind of contractor, and we didn’t explain this, but the proposition would give them contractor status with slightly improved benefits, slightly better wages, some health supplements, some insurance to drive a certain amount of hours. So the point is, if you create that third category, the worry is that a bunch of other corporations are going to be like, hey, you know, that’s a great way to save money. Let’s maybe create an app for trucking service or delivery service. And then we can instead of paying the workers as employees, we can use the kind of contractor-plus model.

And again, if you look at the history of the company, an independent contractor in America, this was added. The independent contractor model was added as a caveat for various specific kinds of situations. And then you saw corporations over time moving more of their work force from employees, which are expensive because they have protections over the contractors, which are cheaper. So, again, the worry is you make this third kind of third way. And companies are going to find a way to exploit it.

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Google Announces $1 Billion Dollar Investment Into The Future Of News

Illustration for article titled Google to Journalists: Shut Up and Take the Money

Photo: Justin Sullivan (Getty Images)

After spending the better part of the last decade choking every possible cent from the digital media industry, Google’s finally getting the heat that it deserves. More and more people are realizing the company’s monopoly over digital advertising is one of the culprits behind a staggering number of newsroom layoffs. Regulators are realizing this digital dominance could constitute a serious antitrust issue. Combined, that means a massive headache for Google that can, in the company’s eyes, be solved with one thing: a decent payout.

The company’s latest attempt to claw back some goodwill among publishers is a three-year, billion-dollar partnership that’ll go toward the company’s newest product, the Google News Showcase. CEO Sundar Pichai unveiled the Showcase in a company blog post earlier today, promising it would highlight the “editorial curation of award-winning newsrooms” while also helping those newsrooms manifest “deeper relationships” with their readers.

Showcase is first debuting in the standalone Google News app for Android, with an accompanying rollout for iOS users coming “soon.” As the name implies, the app will literally start “showcasing” the top stories of the day as a carousel beneath the app’s personalized daily brief. Alongside the headlines, these stories will show summaries of the story in question, related articles, and more. And according to Pichai’s post, similar showcase-y features are set to come to Google’s Discover feed and Search engine “in the future.”

Illustration for article titled Google to Journalists: Shut Up and Take the Money

Graphic: Google (Getty Images)

I know it sounds pretty similar to the average app most of us use for reading news on our phone right now. But Pichai wants you to believe that Showcase—which is being test run with roughly 200 “leading publications” across Canada, the EU and Latin America before a wider rollout in the future—isn’t just