In a note to clients — as noted by AppleInsider — Morgan Stanley analysts predict that Apple Pay will narrow the gap with PayPal with transactions hitting $190 billion in 2022, and $304 billion by 2027.
That compares to PayPal figures of $431 billion and $579 billion, respectively, though excluding any offline wallet possibilities, which could theoretically add as much as $257 billion to PayPal's volume by 2027.
While PayPal has "the best consumer penetration by far," Apple is "the clear leader among app/phone-based digital wallets, and has seen 300 basis points of growth in online usage since summer 2018 survey,” according to Morgan Stanley.
"We expect the new Apple Card, launching this summer with Goldman Sachs and MasterCard and 2% cash back on Apple Pay purchases, will help drive up Apple Pay awareness and usage," the analysts added.
The Apple Card was announced in March. It will be built into the Apple Wallet app on the iPhone, allowing customers to manage their card right on the smartphone. Apple will also offer a physical version of the card (pictured) for those who need it.