Two-thirds of Apple Pay users running into problems at checkout, survey claims
Although Apple CEO Tim Cook claimed that Apple Pay had "gotten off to the most amazing start," about two-thirds of its users are encountering problems at retail, according to a survey published this week by Phoenix Marketing International.
The survey of about 3,000 people, obtained by Bloomberg, noted that 66 percent of iPhone 6 and 6 Plus owners -- the only ones who can use Apple Pay at retail, until the Apple Watch ships on April 24 -- have signed up for the service so far. Almost half of that group, however, is said to have visited a store listed as an Apple Pay partner but discovered that the location wasn't accepting the platform, at least at the time.
Among the problem group, 48 percent said it took too long to process a transaction, and 42 percent said the cashier wasn't familiar with the technology. Some shoppers also complained about transactions being incorrect, or run twice.
A separate Citi Research survey published on Monday echoed these complaints, according to Bloomberg.
The lack of merchant support is thought to be linked to the cost of upgrading point-of-sale terminals to models that can support NFC chips like the one used in the iPhone. Although US retailers are obligated to upgrade those terminals by October anyway to support EMV chip technology (for credit and debit cards), only a third of them had switched by the end of 2014, and a projection quoted by Bloomberg only calls for half of them to convert by the end of this year.
The survey of about 3,000 people, obtained by Bloomberg, noted that 66 percent of iPhone 6 and 6 Plus owners -- the only ones who can use Apple Pay at retail, until the Apple Watch ships on April 24 -- have signed up for the service so far. Almost half of that group, however, is said to have visited a store listed as an Apple Pay partner but discovered that the location wasn't accepting the platform, at least at the time.
Among the problem group, 48 percent said it took too long to process a transaction, and 42 percent said the cashier wasn't familiar with the technology. Some shoppers also complained about transactions being incorrect, or run twice.
A separate Citi Research survey published on Monday echoed these complaints, according to Bloomberg.
The lack of merchant support is thought to be linked to the cost of upgrading point-of-sale terminals to models that can support NFC chips like the one used in the iPhone. Although US retailers are obligated to upgrade those terminals by October anyway to support EMV chip technology (for credit and debit cards), only a third of them had switched by the end of 2014, and a projection quoted by Bloomberg only calls for half of them to convert by the end of this year.
Comments
I've never had a problem unless the NFC reader was broken.
I use it all the time at Wholefood, Duane Reade, and surprisingly this little Indian spice store that has a NFC reader.
I use it a LOT...and yes, there are problems... but I would say it's about 1/20 of the times I use it there is an issue.
I still would have answered the questions with an "affirmative" that there are problems: but saying that everyone is having problems doesn't really represent how frequent or pervasive those problems are.
So far, my favorite place to use it is at the Shaw's Star Market Grocery store. When you use Apple Pay there it literally doesn't ask you ANY questions (cash, member number, PIN, etc). You don't even have to touch the machine at all.
Walgreens is the worst at this. Even with Apple Pay, checking out is a PITA with all the stupid prompts on the machine...
Also: let's not forget that things are not always peachy with plastic cards either. Why does it always feel like the person in FRONT of me has trouble swiping their damn card?! ;-)
ApplePay for me has a much better success rate then a credit card alone, and I get to show off my big ass iPhone6+
Is this really just about Apple Pay or all NFC payment systems problematic?
Walgreens worked perfectly. WFM worked perfectly.
I like Walgreens the best - I never touch the terminal to authorize the amount. With WFM, I have to click "OK" to authorize the amount.
The best is to avoid touching terminal that has been touched by many shoppers, ew.
I've had similar issues with it. Over the weekend, I had to try three times and it said "Done" each time, but didn't actually go through. I finally had to give up and use a regular credit card. I've used it about twenty times and have found that it generally takes longer for me to complete the process than it would to just take out and use my credit card. I see the benefit with regards to security, but in the end, the credit card companies are on the hook for any fraudulent charges and the banks are seeing higher fraudulent charges anyway because of their implementations of Apple Pay. In the end, it seems like just another way to pay that also has its problems.
I tried once to use it at the McDs drive-thru... NEVER AGAIN. They had to swing the whole CC-reader terminal and hang it out the window for me to reach my phone out to complete the transaction. Then it took three tries for it to work. It's so much faster to give them my card, have them swipe, and be on my way.
I've had no issues, however, using it places like Walgreens, Staples, and Home Depot.
lies lies lies... I have never had a problem and neither have anyone I know who also prefers ApplePay security. I cannot wait as all registers go NFC enabled by end of this year so I can use ApplePay just about every where that matters.
Much as most of us here are eager about Apple Pay, I don't think the general public like having to work things out if it's too much of a hassle. There are enough barriers to leap with Apple Pay to cause a large proportion of people to reject it. Does Apple give clear instructions for setting it up and using it? Has it provided a comprehensive FAQ?
When people are so used to paying with a card or cash, it will take a lot to switch. I think it might be easier in Europe, because more have contactless cards, although that could also be a reason for limited adoption, because they are already convenient. If all you have to do is wave your card over a reader, that's really no less convenient than using Apple Pay. In fact, it might even be quicker and easier than having to get your iPhone out and hold it up and wait for it to register. Using the Apple Watch is potentially even worse, as you have to use two hands to tap the screen; better put down that shopping bag or baby. Security is a selling point, but I don't think it's a particularly compelling one, because fraud is already much lower in Europe and has been for many years due to chip and pin.
I fall in the third that has had no issues.
I have used it successfully at the following:
* Whole Foods - every other week since it launched
* Home Depot - Not an officially supported place, but it worked in the windows & door area and self checkout. Used a few times
* Sports Authority - a few of times
* Walgreens - frequently
* Panera Bread - a few times
* American Eagle
I also use it in the Groupon App every time. And it is cake there.
There was one store, JC Penney, I think, that it said Done but nothing happened. The only issue I have run into.
Looking at the details of the story, as opposed to, in my opinion, what the sensationalist headline says, I am in the 66%. But that is because of JC Penney. But I love it, and often, the cashiers love seeing it done, too.
lies lies lies... I have never had a problem and neither have anyone I know who also prefers ApplePay security. I cannot wait as all registers go NFC enabled by end of this year so I can use ApplePay just about every where that matters.
I really liked Apple Pay, and this artical may be overblown, but so is the lies lies lies
good that you have never had an issue, and no one that you know has,
I have, and I know quite a few people with iPhone 6, and all of them have experienced occasional problems.
Some stores (Harris teeter for example) At first it worked great, then i had issues where it would say "done" but it wasn't done, it might take 2 or 3 attempts then it might go through. Its unreliable enough now I seldom bother with it.
Once gas pumps take it, and it becomes more widespread and reliable, I will start using it again. For now - its simply not reliable enough
Not scanning is the biggest. This had a lot to do with where I held my iPhone. On the McDonalds terminal, it has the red piece that says scan here, but I found I have 100% success if I hold it over the terminal itself instead of 3 inches further up on the red area.
Saying done and nothing happened. This had everything to do with the cashier rather than Apple Pay. S/he simply didn't select NFC on their register. They're too used to automatically selecting debit as the payment method. I had one lady insist she did it correctly until her supervisor came over to pressed the right option. That day was the first day I used Apple Pay. This can result in Apple Pay saying done multiple times. I think "done" means more that it linked and transmitted information rather than confirming a transaction took place. It probably doesn't mean you got billed when it says done because that would mean information went back and forth to the phone.
Anyway, it works fine with me whenever I can remember to use it. And since I'm usually staring at my phone while waiting in line, it has become faster than debit.
o Panera it has worked 4 out of 5.
o At Office Depot Dadeland in Miami, it was not working. The employee at the cash register said it was not working. I have tried every time I go there unsuccessfully.
o Disney parks, i.e. Blizzard Beach and Animal Kingdom, I tried to use it through out the park and it NEVER worked. One employee told me "we don't support Apple Pay". I looked like the fool/geek trying to use it every time and it never worked.
o At Subway, I struggled the a couple of times but eventually the transaction went through.
o Winn Dixie, it worked 1 out of 1.
o Walgreens, it worked 1 out of 1.
The only time it didn't work for me was at Panera because their POS terminal was large and the sensitive area was not identified. The cashier, however, knew what the issue was and simply had me move my phone and it worked. This is all about training and support by the service hosting each POS terminal. Home Depot isn't technically supported and none of the cashiers know what I'm doing when I use my phone but it works, except it almost always requires a signature. I try all stores I go to to see if Apple Pay works. Some cashiers know it doesn't work others haven't the faintest idea what I'm trying to do. I do know that you have to wait until the cashier has completed the transaction before it works properly. I have had to "pay" twice but the first time was too early and even though it looked and sounded like it worked, the POS terminal wasn't ready to accept it even though my iPhone thought it was.
As for the constant excuse that NFC-capable POS terminals are expensive, it's all relative. I easily found one costing under $500. Is that expensive? That's probably less than what every business loses daily by shoplifters.
def: POS means "point of sale"
The article says that out of 3000 people surveyed, 66% (2/3rds which would be 2000) use Apple Pay. That means they are using it, not having problems.
The article then states of that group (i.e. 2000) roughly half have been to an Apple Pay partner that wasn't accepting the platform - which I agree would be counted as a problem (for the retailer not the user)... but we are only talking about 1000 people. The title at most should say that 1/3rd of the Apple Pay users have entered a retailer who isn't supporting the platform - not that the users have had problems with it.
The article then says of that problem group (the 1000 people who arrived at that conclusion which is who this article should be about), 48 percent (480 people) said the process took too long. 42 percent (420 people) said the cashier wasn't familiar with the process.
Just details I suppose.
I've had no problems myself - even if the cashier didn't know anything about Apple Pay. In fact, usually they are totally surprised when I do it.