Apple Pay, the Cupertino-based company’s new mobile payment service announced on Tuesday, could prove to be a big source of revenue for the company during a time when music and app downloads are slowing. Bloomberg reports Apple will collect fees from banks when iPhone 6 and Apple Watch users make a purchase. Fees will be charged for every single transaction, though the fee hasn’t been detailed.
It isn’t necessarily ground breaking Apple is charging a fee, as it mirrors current fees that already accompany credit and debit cards in the US. However, it could mean a big boost to Apple’s quarterly revenue with Apple now at the forefront of the mobile payments industry.
The mobile-payments market will more than quadruple to roughly $90 billion by 2017, according to a recent study conducted by Forrester Research. Apple seems to have made big moves to capitalize on the majority of this market by signing the big banks including JPMorgan Chase, Bank of America, and Citigroup to be apart of its program.
“Gone are the days of searching for your wallet,” Apple advertises. “The wasted moments finding the right card. The swiping and waiting. Now payments happen with a single touch.”
Apple Pay will launch sometime in October, the company detailed at an event on Tuesday. To pay, Apple says you simply hold your iPhone near the contactless reader with your finger on Touch ID. A subtle vibration and beep lets you know the information has been sent and your payment has been completed.