A new study by investment firm Morgan Stanley is suggesting Apple Pay will be the only mobile payment service that will see widespread use.
The firm found that out of more than 60 million merchants in the U.S., Apple Pay was the only one that saw an increase in transactions with its first-quarter sales of $10.5 billion.
That figure includes a surge of more $1.1 billion in transactions in the fourth quarter alone.
Morgan Stanley said Apple Pay’s growth rate in the first quarter was driven by merchants that had previously implemented mobile payment solutions, such as Stripe, that could be used in stores.
“Apple Pay is an emerging payment technology that has the potential to be the leading alternative to traditional mobile payments,” Morgan Stanley analyst Richard Levesque said in a statement.
“The potential for Apple Pay to be a mainstream payment solution is also very real given the fact that over the past several years, consumers have increasingly turned to mobile payment platforms for their payment needs.”
Apple is currently in the process of launching its new iPhone and iPad devices, and Levesques said the company will likely launch a mobile payment product sometime in the second half of the year.
The company is also expected to launch its Paypal mobile payments platform in the next few weeks.
Apple’s move to allow its customers to pay with their mobile phones has drawn widespread praise.
Consumers and even some of Apple’s competitors are now moving away from using credit and debit cards in their purchases.
But some merchants are already moving away as they realize the value of mobile payments.
According to the report, consumers spent $1 billion more in the third quarter on mobile payments than they did last year.
And that trend is likely to continue, the report said.