The Connected Economy Today: Apple’s Other Revenues

Today, in the connected economy, new research shows that Apple’s music and game sales could top $8 billion by 2025.

Additionally, Amazon is choosing a California city to test its Prime Air drone deliveries and buy now, pay later (BNPL) provider Affirm is partnering with travel website Agoda.

Apple Music and games could generate $8.2 billion by 2025

Apple’s music and games sales revenue could reach $8.2 billion by 2025, according to a new study by JPMorgan analysts.

That figure, which represents a 36% increase, would be driven by a subscriber base of around 180 million – 70 million in games and 110 million in music.

About $7 billion of that revenue would come from Apple Music, with the rest coming from Apple Arcade, the gaming subscription service that debuted in 2019.

Apple doesn’t give a breakdown of sales for games and music services, it reported revenue of $19.8 billion for the quarter ending March.

Amazon will test Prime Air deliveries in California

Amazon has chosen residents of the California town of Lockeford to be among the first customers to receive drone deliveries through its Prime Air service.

“Lockeford has historic ties to the aviation industry,” the retail giant said in its announcement. “The community has one of the earliest aviation pioneers, Weldon B. Cooke, who built and flew the first airplanes in the early 1900s, as a former resident. Now, more than a century later, residents will be able to sign up for free drone delivery of thousands of everyday items.

Amazon said it would use resident feedback on the delivery service to help determine Prime Air’s future. The company said the launch also comes with an investment in Lockeford, including the creation of new jobs as well as partnerships with community groups.

Affirm, Agoda will provide BNPL Travel Booking

Approved travelers booking hotel stays on the Agoda platform will receive a buy-it-now, pay-later option from provider BNPL Affirm under a new agreement between the companies.

For hotel stays of $50 or more, guests will have the option of making interest-free payments every two weeks or once a month through Affirm’s adaptive payment.

“The launch of pay-over-time options with Affirm will allow travelers to North America who may have previously found it inconvenient to pay for their reservation in one lump sum to spread the costs over multiple payments without incurring compound interest. or additional costs,” said Thi-Mai-Linh Bui, Chief Financial Officer of Agoda.

Virgin Money teams up with SurePay on CoP solution

Payment information company SurePay has partnered with Virgin Money to help the company use its UK Confirmation of Payee (CoP) solution to protect users against fraud and misdirected payments.

The companies said the solution lets consumers know that their payments are reaching the intended recipient, rather than being rerouted by mistake or deliberately. SurePay said its algorithm is designed for CoP and operates under UK payment guidelines.

“We are committed to protecting our customers from fraud, and beneficiary confirmation is an invaluable tool to help achieve this,” said Fergus Murphy, Virgin Money’s director of customer experience.

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NEW PYMNTS DATA: THE CUSTOM PURCHASING EXPERIENCE STUDY – MAY 2022

About: PYMNTS’ survey of 2,094 consumers for The Tailored Shopping Experience report, a collaboration with Elastic Path, shows where merchants are succeeding and where they need to up their game to deliver a personalized shopping experience.