Chase announces over 1M wallets provisioned on Apple Pay
As part of JP Morgan Chase's 2015 Investor Day on Tuesday, the bank went over statistics relating to its credit card business, announcing it has provisioned over one million wallets on Apple's fledgling Apple Pay mobile payments service.
During today's investor conference call, Chase said that more than one million customers have provisioned their credit and debit cards for use with Apple's digital wallet, opening up opportunities for online and NFC-based touchless payment with the iPhone 6 and iPhone 6 Plus.
"We were an early participant of Apple Pay," said Eileen Serra, CEO of Chase Card Services. "We do continue to see good growth in the number of consumers that are provisioning Chase cards in their Apple Pay wallet."
Serra said Chase customers who use Apple Pay tend to be younger with higher incomes, which is to be expected considering the platform relies on iPhone 6 and iPhone 6 Plus for touchless payments. Since Apple Pay's launch, 69 percent of Chase card transactions were credit based, while debit made up the remaining 31 percent of purchases.
"We've been excited about the feedback we've gotten in terms of the great customer experience," Serra said. "As more merchants adopt, I would expect to see more traction here, as well."
While Apple Pay launched over four months ago, Apple has yet to release detailed adoption numbers, leaving credit card companies, banks and retailers to report their own statistics. During Apple's quarterly conference call last month, CEO Tim Cook forecast accelerated growth and even called 2015 "the year of Apple Pay."
Today's announcement comes after Bank of America revealed similar adoption numbers in January, with almost 800,000 customers provisioning 1.1 million cards on Apple's service.
Earlier today, credit card network Visa announced plans to introduce its network-level tokenization service in Europe this April, laying the technological foundation for an international Apple Pay rollout.
During today's investor conference call, Chase said that more than one million customers have provisioned their credit and debit cards for use with Apple's digital wallet, opening up opportunities for online and NFC-based touchless payment with the iPhone 6 and iPhone 6 Plus.
"We were an early participant of Apple Pay," said Eileen Serra, CEO of Chase Card Services. "We do continue to see good growth in the number of consumers that are provisioning Chase cards in their Apple Pay wallet."
Serra said Chase customers who use Apple Pay tend to be younger with higher incomes, which is to be expected considering the platform relies on iPhone 6 and iPhone 6 Plus for touchless payments. Since Apple Pay's launch, 69 percent of Chase card transactions were credit based, while debit made up the remaining 31 percent of purchases.
"We've been excited about the feedback we've gotten in terms of the great customer experience," Serra said. "As more merchants adopt, I would expect to see more traction here, as well."
While Apple Pay launched over four months ago, Apple has yet to release detailed adoption numbers, leaving credit card companies, banks and retailers to report their own statistics. During Apple's quarterly conference call last month, CEO Tim Cook forecast accelerated growth and even called 2015 "the year of Apple Pay."
Today's announcement comes after Bank of America revealed similar adoption numbers in January, with almost 800,000 customers provisioning 1.1 million cards on Apple's service.
Earlier today, credit card network Visa announced plans to introduce its network-level tokenization service in Europe this April, laying the technological foundation for an international Apple Pay rollout.
Comments
ApplePay is gonna be huge.
It will be all over Europe by end of April.
Any reason why you think it will spread through Europe that quickly?
Just kidding. I am still in awe of the perfect combination of tech and liberal art that creates the Apple Pay. You could just study the how and why of Apple Pay to understand why Apple is so successful.
That last stat is the most important. People are spending more with ?Pay than their regular card.
Every bank in the world, and every credit card provider is going to jump all over this.
The one issue that I've noticed is that sheer convenience, inertia, and not wanting to hold up the line behind me works in favor of the default credit card (in my case, Amex) being used to make all my payments on ApplePay: hold phone over NFC symbol with finger on TouchID, make sure the check sign shows up against the image of the default card, sign (sometimes), and leave.
I wonder what the implications of this would be for credit card companies jockeying for you to be their default. I'll bet there are significant market share implications for credit card companies of ApplePay becoming huge.
If the fraud savings are as high as I think they are I could see these companies 1) giving customers, say, a point for every dollar spent, and/or 2) giving a slight drop in transaction fees every time ?Pay is used. The former would be the main straightforward, but the latter would help get merchants to not only add NFC, but also advertise it.
Any reason why you think it will spread through Europe that quickly?
“Apple and Visa (Inc) have an agreement around what has happened,” Visa spokesman Steve Perry told Reuters. “I am as excited as anyone, but we have to wait,” he said.
Visa Inc. technology will be used by Visa Europe, MasterCard and American Express and they all support Apple pay.
It's just a matter of getting the supporting member banks to join and Apple has that down to a science at this point.
http://www.idownloadblog.com/2015/02/24/visa-tokenization-europe/
http://www.cnet.com/news/apple-pay-could-benefit-from-visas-new-token-security/
http://appleinsider.com/articles/15/02/24/visa-readies-network-tokenization-launch-in-europe-sets-the-stage-for-apple-pay-debut
That's the issue that concerns me. It seems to me the diversity of Europe could make this process more arduous and time consuming compared to ?Pay setup by US banks.
That's the issue that concerns me. It seems to me the diversity of Europe could make this process more arduous and time consuming compared to ?Pay setup by US banks.
I hate skepticism from any quarter.
Companies which need the ?Pay story and its clear advantages spelled out for them may not jump on board immediately. But once the majority of others get on board and customers start clamoring enough for ?Pay, the skeptics will buckle.
That's the issue that concerns me. It seems to me the diversity of Europe could make this process more arduous and time consuming compared to ?Pay setup by US banks.
Well, the Banks would be foolish not to join since they don't pay any transaction fee to Apple. They just follow card network protocols.
As diverse as the Banks may be, they still interface with the same card networks. (Visa, MasterCard, Amex)
Issuing Banks and Acquiring Banks have to interface with the card network schemes and that's where Apple Pay wins.
I'm not skeptical that ?Pay will not catch on; It's exactly the system I suggested was needed years ago… and now it's here. My issue is with the comment, "It will be all over Europe by end of April." This is a major paradigm shift that WILL happen because it so many intrinsic benefits on each end of the payment system, but it will take time. Within 3 years I think we'll be surprised if a major retailer doesn't accept ?Pay, but by the end of April I don't think we'll be surprised if it's not "all over Europe."
This is definitely a possibility.
But it also means they have compete with each other for the 'prime spot' with top dollar customers and they may not really want to do that. Visa and MC have been caught colluding (and have settled with) the DoJ in the past.
We're in for interesting, disruptive times on the retail payment front.
I've only found a vending machine here in the states, at work, that takes ApplePay. Favorite stores still do not have it, so forgetting about thinking to ask about it and just going to plastic to purchase. Hopefully, it will catch on, but costs a lot of money, and to what benefit, to update POS systems?
The cost is actually very low for most retailers as the PoS system doesn't need to be updated, but rather the card swipe machine, or even just the part that has the customer sign their name digitally. Then you have the mandated updated for the chip and PIN cards in the US that will force retailers to update their card swipe machines. I do agree that getting retailers to get systems capable of accepting NFC payments when it's not mandatory will be the most difficult part of the process, but I expect this to increase exponentially as more and more iPhones that support ?Pay, and ?Watch, and then other devices with NFC flood the market, which will push customers to ask about it more often, and eventually avoid certain stores that aren't supporting it once it hits a certain point.
There's money (big bucks) to be made being the default go to card for Apple Pay ...
What's in your wallet ... Nothing!
What's it worth ... Everything!
I'm now waiting for a similar "hit piece"... just wondering if APay has hit critical mass in a similar sense already?