Study: 6% of iPhone 6 owners have used touchless Apple Pay in stores, 85% have not

Posted:
in iPhone edited March 2015
According to market research firm InfoScout, some six percent of iPhone 6 and 6 Plus owners have used Apple Pay to make a touchless transaction, while 85 percent have yet to try the service.




InfoScout announced its findings at the PYMNTS.com Mobile Innovation Project 2015 conference on Wednesday, with Venture Beat reporting adoption of Apple's NFC-based mobile payments system is moving "very slowly."

Aside from the six percent who used or continue to use Apple's iPhone-based NFC payment solution, 85 percent of iPhone 6 owners have not even played with the service. Another nine percent said they experimented with Apple Pay, but forgot how to use it when making a purchase or didn't know where it was accepted. Since Apple Pay launched in October, however, there have been a number of how-to articles published covering setup and management, including AppleInsider's step-by-step guide.

Statistics were based on a three-day survey taken last week involving 1,188 participants. It was not made clear whether data includes adoption statistics for Apple Pay's in-app payment functionality, available on iPhone 6, iPad Air 2 and iPad mini 3, but the report's language suggests only information regarding in-store transactions was counted.

When discussing reasons as to why consumers have not yet used Apple Pay, the report muddles the data. Instead of distinguishing customers who are satisfied with their current payment method and those who do not understand how Apple Pay works, the two classes are lumped together.

One thing that is clear, however, is a current hardware limitation to Apple Pay's growth model.

"Not only do you have to have consumers with Apple Pay, you have to have consumers with iPhone 6," said PYMNTS CEO Karen Webster. "So, you have to have a consumer with the right hardware and the merchant with the right hardware in order for it to work."

Apple is addressing this concern in part with Apple Watch. When the device debuts in April, it will not only serve as a client-side Apple Pay terminal for iPhone 6, but also as a go-between for Apple devices that lack NFC chips, like iPhone 5, 5s and 5c.




Perhaps more important than hardware availability is customer loyalty. The study found 30 percent of respondents who already use Apple Pay base their shopping choices on whether a store supports Apple's service. If the number of consumers actively seeking out Apple Pay-compatible locations grows, retailers may feel pressure to jump on board, thus expanding the service's footprint.

In addition, survey participants shrugged off recent media reports of security concerns and most hold a view that Apple Pay is easy to use and safe, the report said.

Apple is slowly adding to a running list of merchants that support Apple Pay and recently announced 14 new partners including Jamba Juice and Office Max, making it more enticing for those who have yet to adopt.

Additionally, the number of financial institutions participating in Apple Pay is steadily increasing. Just yesterday, Apple updated added another 39 banks and credit unions, bringing the total to almost 150 partners across the U.S., with another 700 awaiting authorization.
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Comments

  • Reply 1 of 92
    entropysentropys Posts: 4,152member
    Go live in Australia and it will be used heavily. The payment system is already set up for it.

    Also the article doesn't make clear that their are real limits to adoption when most of the US payment hardware isn't up to it. Unlike Austrrlaia where the terminal hardware is already widely adopted. And Europe too.
  • Reply 2 of 92
    konqerrorkonqerror Posts: 685member
    Quote:
    Originally Posted by Entropys View Post



    Also the article doesn't make clear that their are real limits to adoption when most of the US payment hardware isn't up to it.

     

    It's the same story as always: merchants hate credit card companies and treat cash registers as a money sink, not a opportunity. We're 7 months out from our EMV/chip card deadline. Cards have been reissued, terminals installed but not enabled, and absolutely nobody knows how to use it. Exactly one major merchant, Wal-Mart, has switched over. There has been absolutely zero PR or social awareness.

     

    I bet if they compared Apple Pay with Chip Card, they'd find Apple Pay is way ahead.

  • Reply 3 of 92
    solipsismysolipsismy Posts: 5,099member
    I know a lot of iPhone 6 series owners that have yet to use it, many without having setup a card.

    Personally, I used twice just today which was for 66% of the transactions I made (although I still used my iPhone 6 at the Starbucks for payment so I'm not sure if that should be tossed out since it's not a typical transaction type). One of them was me forgetting to bring in my wallet from the car when hitting the grocery store after the gym, but I noticed they had the newer EMV/Chip and PIN reader so I gave it a shot and it worked. No NFC symbol on the card readers from either place I used it, which I thought was strange. They were Verifone EMV readers, which seems to mostly also have NFC HW.
  • Reply 4 of 92
    I would use ApplePay all the time, if I could find a store that supported it. The only places I have seen ApplePay supported in Texas is Panera and some McDonalds. Every other retailer has the terminals that support it, but do not accept ApplePay.
  • Reply 5 of 92
    Does this survey include use of the iPhone 6 at NFC terminals in stores regardless of whether they're formal ApplePay partners or not?

    If it does not, it's a rather limited -- I dare say, pointless -- data gathering exercise.
  • Reply 6 of 92
    Quote:
    Originally Posted by semi_guy View Post



    The only places I have seen ApplePay supported in Texas is Panera and some McDonalds.

    Walgreens, Staples. Works but not advertised: Home Depot and Bass Pro.

  • Reply 7 of 92

    Uh... 9% don't know?

  • Reply 8 of 92
    Wow, low figures.

    From reading this forum, it sounded like Apple Pay was at 99% penetration.

    Judging by iTunes Radio, we can look forward to a rollout of Apple Pay in Europe by never.
  • Reply 9 of 92
    uphilluphill Posts: 62member

    And also by never in Canada. I want to eliminate carrying actual physical cards around with me. Even with the chip technology which is almost universally used here and in Europe, having a physical card in my pocket is asking for trouble. Just recently while I was wintering in Florida, someone at (I think) a restaurant was able to copy down one of my credit card numbers and the CVV code when the card was taken to the back of a restaurant to be "swiped" - an ironic term indeed.

     

    The card issuer was very quick to catch the ensuing fraud, but an attempt was made to use the information to make $4000 in online orders.

     

    I have since vigorously scratched out the CVV codes on all my cards. I store them in 1Password on my iPhone. So I guess that is a primitive implementation of a kind of ApplePay for me. LOL. I also take the card to the terminal in any US restaurant now. In Canada and Europe, wireless terminals are brought to one's table for chip and PIN, a much better idea than the magnetic stripe.

  • Reply 10 of 92
    mstonemstone Posts: 11,510member
    Quote:

    Originally Posted by Benjamin Frost View Post



    Wow, low figures.



    From reading this forum, it sounded like Apple Pay was at 99% penetration.



    Judging by iTunes Radio, we can look forward to a rollout of Apple Pay in Europe by never.

    Judging by reliable  poster  @GregInPrague Apple Pay is already well accepted in Europe as long as the card is from the US. You guys are going to have to wait, as usual, for full implementation abroad. 

  • Reply 11 of 92
    solipsismysolipsismy Posts: 5,099member
    Does this survey include use of the iPhone 6 at NFC terminals in stores regardless of whether they're formal ApplePay partners or not?

    If it does not, it's a rather limited -- I dare say, pointless -- data gathering exercise.

    What do you mean by "formal"? Being listed on Apple's website? I would think that's just an early start formality that will be eliminated after about a year.

  • Reply 12 of 92
    Quote:

    Originally Posted by Benjamin Frost View Post



    Wow, low figures.



    From reading this forum, it sounded like Apple Pay was at 99% penetration.



    Judging by iTunes Radio, we can look forward to a rollout of Apple Pay in Europe by never.



    Well, the survey was of around 1200 people. Apple sold over 70 million iPhone 6 variants in a few days at launch. Half of those in the USA. So the sample size of the survey is a tad small.

    From reading this forum, it sounds like Apple Pay is the most used cardless payment system in the world - exactly what it is (after just a few months of availability).

    It will launch in Europe & Australia later this year, and it will be huge.

  • Reply 13 of 92
    tzterritzterri Posts: 110member
    I would use it a lot more if I could. 3 of my cards that I often use do not support Apple pay plus a lot of merchants still aren't setup for it.
  • Reply 14 of 92
    solipsismysolipsismy Posts: 5,099member
    tzterri wrote: »
    I would use it a lot more if I could. 3 of my cards that I often use do not support Apple pay plus a lot of merchants still aren't setup for it.

    Assuming you're in the US, that's interesting since it seems over 99% of covered accounts are supports at this time.
  • Reply 15 of 92
    Apple Insider, 6% of iPhone 6 owners where? US? Worldwide? Wisconsin?

    You should clarify this, otherwise the story has no statistic validity.
    Considering Apple Pay is only available in the US at the moment, 6% of worldwide iPhone 6 models is a truly remarkable percentage, whereas 6% of US-sold iPhones is completely different.
  • Reply 16 of 92
    solipsismy wrote: »
    tzterri wrote: »
    I would use it a lot more if I could. 3 of my cards that I often use do not support Apple pay plus a lot of merchants still aren't setup for it.

    Assuming you're in the US, that's interesting since it seems over 99% of covered accounts are supports at this time.

    Let's face it: it's going to do nothing for the bottom line.

    That said, I'd love to be able to use it, as it sounds very neat. I like getting email receipts rather than paper ones.

    First things first: firstly, Ive needs to design an attractive iPhone to replace the ugly 6. Secondly, it needs to be 4" or thereabouts.

    Once those pieces have fallen into place, then I can proceed.
  • Reply 17 of 92
    ecatsecats Posts: 272member

    This is a report with a pre-written objective, how can one tell?

    1. The structure of the survey questions is inadequate and sample size is too small to account for the vast number of variables and demographic issues. (E.g. issuers, in-store availability, frequency of shopper etc.)

    2. The conclusion ignores that the iphone 6 and apple pay platform are less than 6 months old.

    3. The conclusion ignored that availability of the service is limited by both bank issuers and service terminals, both of which are being rapidly expanded.

    4. The conclusion insinuates that growth has flatlined (exactly false.)

    It's too soon and too small a sample set to make any meaningful conclusion about the data. Indeed more meaningful data is that of all wireless payments made, apple pay is becoming the dominant wireless payment service.)

  • Reply 18 of 92
    bobschlobbobschlob Posts: 1,074member
    Quote:

    Originally Posted by semi_guy View Post



    I would use ApplePay all the time, if I could find a store that supported it. The only places I have seen ApplePay supported in Texas is Panera and some McDonalds. Every other retailer has the terminals that support it, but do not accept ApplePay.



    It's not about what you have "seen". The only way you know for sure is to try it. It'll either go through, or not.

  • Reply 19 of 92
    I would use it a lot more if Discover would hurry up and get on board.
  • Reply 20 of 92
    solipsismysolipsismy Posts: 5,099member
    ocmikem wrote: »
    I would use it a lot more if Discover would hurry up and get on board.

    Unfortunately, it'll probably be more unusual to go into a place and have them not support ?Pay in general, before Discover finally says they'll get onboard.
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