Apple Pay’s revenue stream

Further to my Observer column yesterday, this from Bloomberg.

Apple Inc. (AAPL) will reap fees from banks when consumers use an iPhone in place of credit and debit cards for purchases, a deal that gives the handset maker a cut of the growing market for mobile payments, according to three people with knowledge of the arrangement.

That’s a small cut on millions of daily transactions. Adds up to a formidable revenue stream.