👉 Background: Apple is known for many of its innovative solutions in hardware... But it's been making a big push to expand its software revenue lately through Apple TV+, iCloud subscriptions and Apple Pay.

👉 What happened: But now, Apple is going one step further - it's launching 'Tap to Pay' with Westpac and Tyro Payments. This will allow business owners to use their iPhone to take payments from debit and credit cards, and Apple Pay.

👉 What else: This comes at a time when the RBA reported that nearly a third of Australians had used a digital device to make a payment...up from 10 per cent in 2019.

What's the key learning?

💡First, iPhones became digital wallets with Apple Pay, but now, they are becoming payment terminals too.

💡 And this is going to cut out a LOT of banks from a whole range of revenue streams.

1. Banks generate juicy revenue from card transactions. But now, Apple has swooped in to earn $110 million annually from Australian banks for allowing customers to use Apple Pay.
2. Banks view payment terminals as a key way of competing in the small business market. All the payments data can be used to offer quick loans and approvals.

💡With Apple displacing so many payment terminals, the banks may lose their foothold with these small businesses. And given Apple's launch of a savings account in the US, it may encroach on the bank's territory once again in the near future.