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Apple (AAPL) Rumored to Start Apple Pay Service in Chile

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Apple (AAPL - Free Report) has been rumored to start offering its Apple Pay service in Chile. Per a chocale blog, customers of Banco de Chile have been able to add their credit cards in the Apple Pay digital wallet, beginning Sep 15 night. However, by Thursday noon, Banco de Chile had blocked enrollment of credit cards in the Apple Pay.

The rumors about Apple Pay’s availability in Chile have been doing the rounds for some time. A couple of prominent Chilean banks, Banco Itau and BICE, have been reportedly preparing to launch the service. In August, Banco Itau updated its mobile app to make it compatible with Apple wallet.

Although Banco de Chile has blocked any enrollment, it seems Apple Pay will be available in Chile anytime now. Last month, the iPhone-maker expanded in Brazil through its partnership with the country’s largest fintech, Nubank. Apple has also been rumored to enter Costa Rica. Per a 9TO5 report, BAC Credomatic has been testing support for Apple Pay in the country.

The expansion into Brazil and the anticipated launches in Chile and Costa Rica are expected to boost Apple Pay’s adoption in South and Central America. Apple will benefit from its partnerships with banks like BAC Credomatic, as these relationships will help it to rapidly expand in other countries of the region.

Apple Inc. Price, Consensus and EPS Surprise

Apple Inc. Price, Consensus and EPS Surprise

Apple Inc. price-consensus-eps-surprise-chart | Apple Inc. Quote


These expansions will help Apple Pay win market share amid stiff competition from other pay services provided by the likes Alphabet’s (GOOGL - Free Report) Google and Samsung, as well as from banks offering contactless debit and credit cards.

Nevertheless, Apple Pay is expected to benefit from the growing demand for mobile payments. Per’s latest report, global mobile payment market size is expected to reach $273.1 billion by 2028, witnessing a CAGR of 31.8% between 2021 and 2028. Rising usage of smartphones and growing preference for contactless payments are key catalysts.

Apple Pay is part of Apple’s Services business that has evolved as a major revenue contributor in the past couple of years as iPhone continues face significant competition. In third-quarter fiscal 2021, Services revenues grew 33% year over year and accounted for 21.5% of total revenues.

Zacks Rank & Other Stocks to Consider

Apple currently has a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Silicon Motion Technology (SIMO - Free Report) and Avnet (AVT - Free Report) are similarly ranked stocks in the broader computer & technology sector.

Long-term earnings growth rate for Silicon Motion and Avnet is pegged at 8%and 25.4%, respectively.

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