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How Apple Made Billions with Apple Pay
Its history, how it works, its profitability for Apple, and why users and banks love it
Apple Pay was launched in the United States on October 20th, 2014. It arrived with the iOS 8.1 update and was initially available only on iPhone 6 and later models.
The service supported credit cards from major providers like American Express, MasterCard, and Visa. By integrating with Passbook (later renamed Wallet), it quickly became more than just another digital wallet — it was an essential part of Apple’s broader ecosystem.
The early years charted a steady course as Apple methodically expanded its service geographically — supporting additional countries — and — joining forces with more types of financial institutions. Today, from buying lattes to booking flights, millions around the world are using Apple Pay daily thanks to its simplicity, security features, and compatibility across multiple devices.
How Apple Pay Works for Users
At its core level, Apple Pay is a mobile payment system, enabling users to make purchases both online and in physical stores directly from their iPhone. But what truly sets it apart is its ease of use. A simple double-click on the side button of an iPhone brings up your digital wallet.
