Apple Inc. (NASDAQ:AAPL)’s mobile payment system can wobble the conventional payment systems. The rise of Apple Inc. (NASDAQ:AAPL) pay can culminate into a complete payment system that will be used in daily life. One of the most paramount payment systems used these days to transfer money is Western Union Money Transfer. In a program on Bloomberg, Hikmet Ersek, chief executive officer of Western Union Co. gave an interview to Erik Schatzker. Ersek said that Western Union is a very innovative company. He thinks that cash is not going anywhere because it is the solid way of money transfer around the world and people trust it. People around the globe, ranging from developed to backward areas, use money transfer mechanisms like Western Union. Mobile payments cannot quell the need of actual money transfers because mobile penetration is still to be materialized into a well-defined phenomenon.
Ersek touted that Western Union counts 29 transaction every second. The company uses electronic ways to transfer money. The mobile feature of Western Union has made it possible to send money from mobile to 500,000 locations, 100,000 ATMs.
Western Union has only 6% contribution from its digital business. Ersek said that 80% of the customers of digital business are new customers. The cannibalization of legacy business by digital business still remains a problems for Western Union. If Apple Inc. (NASDAQ:AAPL) Pay gets mass penetration, conventional payment services can get a major blow. But Apple Inc. (NASDAQ:AAPL)’s payment system has still long way to go because of security, regulation and acceptance issues in the emerging as well as established markets.
Western Union remains the standard money transfer service because of the trust it has gained over the years. Ersek thinks that his company can make the transfers in Bitcoins also once it is regulated. He doesn’t think that Bitcoin or Apple Inc. (NASDAQ:AAPL) are anywhere near to being a challenger to Western Union’s Juggernaut position in the money transfer domain.
Carl Icahn‘s Icahn Capital hold around 52.8 million shares of Apple Inc. (NASDAQ:AAPL).