Online retailers who support Apple Pay in iOS apps will boost sales this holiday, study says

Posted:
in iPhone edited November 2014
While most of the buzz surrounding Apple Pay is focused on its use in person at retail, the most popular application this holiday season may be in securely authorizing online purchases, a new study shows.




A new analysis published Tuesday by the Adobe Digital Index found that the so-called "conversion rate" of online purchases is much higher when Internet-based storefronts accept digital wallet payment options. Specifically, customers are 10 percent more likely to purchase the items in their cart if a digital wallet payment option is available.

With last month's launch of Apple Pay, users can now securely pay for a transaction with their existing credit cards using just their fingerprint, provided the purchase is made through an iOS app that has been updated with Apple Pay support. Apps that support Internet-based Apple Pay purchases include Apple Store, OpenTable, Disney Store, and Target.




Adobe found that digital wallet purchases are most common on smartphones, where 23 percent of online transactions use an alternative payment method. That compares to 16 percent of digital wallet purchases on desktops, and 19 percent on tablets.

The data has led Adobe Digital Index to declare that online retailers who support mobile wallet capabilities, such as Apple Pay, Google Wallet, PayPal or Amazon Payments, will "win this holiday season." And in particular, ADI believes that Apple Pay will become the default alternative payment method for Apple device users, helping digital wallets become even more commonplace.

"Most retailers are initially excited about Apple Pay's implications for the in-store environment," said Tamara Gaffney, principal analyst at ADI. "In-store adoption of payment technology, however, typically takes longer because it means new systems at the store. So, as Apple Pay becomes more ubiquitous, its first win could very well be online."

Apple Pay for online purchases is currently available with the iPhone 6, iPhone 6 Plus, iPad Air 2, and iPad mini 3.




The latest data from ADI is also the latest to show that iOS device users are more active and engaged than those on Android. Its data based on more than 700 million app sessions shows that Apple's iOS represents 65 percent of app launches, compared to just 34 percent for Android.

In addition, iOS device users average twice as long in an app as the average Android user.
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Comments

  • Reply 1 of 38

    If I can push 1 button to skip the entire data entry process, that would be a strong incentive to pick that option.  Not sure if Apple Pay has that but they should allow an online store to get your address, name, and pay all without having to fill in everything.  That's the most annoying part of ordering online, all that data entry.

  • Reply 2 of 38
    Quote:

    Originally Posted by techguy911 View Post

     

    If I can push 1 button to skip the entire data entry process, that would be a strong incentive to pick that option.  Not sure if Apple Pay has that but they should allow an online store to get your address, name, and pay all without having to fill in everything.  That's the most annoying part of ordering online, all that data entry.




    You just summed up ApplePay.

  • Reply 3 of 38
    rob53rob53 Posts: 1,902member
    Quote:

    Originally Posted by techguy911 View Post

     

    If I can push 1 button to skip the entire data entry process, that would be a strong incentive to pick that option.  Not sure if Apple Pay has that but they should allow an online store to get your address, name, and pay all without having to fill in everything.  That's the most annoying part of ordering online, all that data entry.




    Have you tried turning on Safari's Autofill preferences? I just use it for logons and passwords but you can have it fill from Contacts and credit cards you've saved. I haven't looked to see how ApplePay works online to see how much comes from your identified credit card.

  • Reply 4 of 38
    It occurs to me that Apple somehow needs to find a laptop/desktop solution as well, for more widespread online adoption of ApplePay. Not exactly sure of the numbers, but I have to believe that non-mobile purchases still account for a vast majority of online shopping.

    Some type of fingerprint reader hardware, perhaps? $29.99? Hello, Apple?
  • Reply 5 of 38

    Is there a solution for the ApplePay experience through Safari? Seems like stove-piping the shopping experience through specific store apps is pretty limiting. 

  • Reply 6 of 38

    Quote:


    Originally Posted by waterrockets View Post

     

    Is there a solution for the ApplePay experience through Safari? Seems like stove-piping the shopping experience through specific store apps is pretty limiting. 


    Safari can auto-fill the information in, including your CC info. No fingerprint authorization though.

     

    Native apps are the future again, doing things in a browser is going to eventually become a thing of the past.

  • Reply 7 of 38
    rob53rob53 Posts: 1,902member
    Quote:

    Originally Posted by TheWhiteFalcon View Post

     

    Quote:

    Safari can auto-fill the information in, including your CC info. No fingerprint authorization though.

     

    Native apps are the future again, doing things in a browser is going to eventually become a thing of the past.


    Wouldn't surprise me, especially when most browsers have a private browsing mode. Apps will capture as much information as they can get away with so they can push targeted advertising at you. Users don't like this but businesses depend on it so we're out of luck.

  • Reply 8 of 38
    Quote:
    Originally Posted by TheWhiteFalcon View Post

     

    Quote:

    Safari can auto-fill the information in, including your CC info. No fingerprint authorization though.

     

    Native apps are the future again, doing things in a browser is going to eventually become a thing of the past.


     

    I missed that line in there, thx.

     

    I agree that doing things in a browser will eventually become a thing of the past, but that's in the sense that the Earth will eventually be absorbed by the Sun's atmosphere.

     

    At this time, software is very much heading towards browser solutions. While it won't be the only solution, it's gaining popularity for reasons of portability. I could imagine a single native app that provided a secure interface to numerous retailer web sites, along with Touch ID support, but it would essentially be a browser that only hit certain sites.

  • Reply 9 of 38
    jkichlinejkichline Posts: 1,296member
    Quote:

    Originally Posted by anantksundaram View Post



    It occurs to me that Apple somehow needs to find a laptop/desktop solution as well, for more widespread online adoption of ApplePay. Not exactly sure of the numbers, but I have to believe that non-mobile purchases still account for a vast majority of online shopping.



    Some type of fingerprint reader hardware, perhaps? $29.99? Hello, Apple?



    That would be un-Apple like. They don't like additional cables and clutter.  It would probably be added to Continuity next year so when you make a purchase, it will trigger the Apple Pay screen on your iPhone.  That's because Laptop/Desktop doesn't have the hardware to contain the secure element.  I think the big issue is to make sure this can be done securely.

  • Reply 10 of 38
    jkichline wrote: »


    That would be un-Apple like. They don't like additional cables and clutter.  It would probably be added to Continuity next year so when you make a purchase, it will trigger the Apple Pay screen on your iPhone.  That's because Laptop/Desktop doesn't have the hardware to contain the secure element.  I think the big issue is to make sure this can be done securely.

    It need not be cables and clutter. For example BLE. Or whatever it is that Apple plans to use between the AppleWatch and the iPhone 6. Integrated into an Apple mouse.
  • Reply 11 of 38
    jkichlinejkichline Posts: 1,296member
    Quote:

    Originally Posted by anantksundaram View Post





    It need not be cables and clutter. For example BLE. Or whatever it is that Apple plans to use between the AppleWatch and the iPhone 6. Integrated into an Apple mouse.



    I still think it's not going to happen. It wouldn't contribute to the halo effect.  They would rather you use an Apple Watch or iPhone to complete the transaction.  It probably doesn't make fiscal sense for the consumer either.  It would need:

     

    • BLE hardware and pairing capability

    • Application processor of some type

    • Secure enclave to store credit card information and fingerprints

    • TouchID sensor with sapphire cover

    • Stylish aluminum enclosure

    • Batteries and power equipment

     

    All said and done, you're looking for at least $100/device and you wouldn't have the economies of scale that iOS devices enjoy.  Plus, it doesn't contribute to the halo of buying both an Apple computer and mobile device.  You'd also have the issue where you'd have to somehow add your credit cards to the device with no screen, camera and other equipment which makes adding your credit card to an iPhone stupid simple.

     

    Remember that the core principle of Apple Pay is that your data is not stored in the cloud or transmitted.  That means that it must be all handled on one device like your iPhone.  The only thing they could do is add it to Continuity to allow the tokenized response to be transmitted to your computer, etc.

     

    But then again... desktop/laptop computers are a dying breed.  I think in this case Apple is skating to where the puck will be instead of where it's at.

  • Reply 12 of 38
    Quote:
    Originally Posted by jkichline View Post

     



    That would be un-Apple like. They don't like additional cables and clutter.  It would probably be added to Continuity next year so when you make a purchase, it will trigger the Apple Pay screen on your iPhone.  That's because Laptop/Desktop doesn't have the hardware to contain the secure element.  I think the big issue is to make sure this can be done securely.




    If they had an Ax based MacBook, perhaps, as that'd have the camera and adding a Secure Element would be okay. But I really doubt it'd happen, as that is a bit too, well, Samsung-ish for Apple. So I agree, not happening.

  • Reply 13 of 38
    I thought Target refused Apple Pay for its retail stores
  • Reply 14 of 38
    Quote:
    Originally Posted by jkichline View Post

     

    I still think it's not going to happen. It wouldn't contribute to the halo effect.  They would rather you use an Apple Watch or iPhone to complete the transaction.  It probably doesn't make fiscal sense for the consumer either.  It would need:

     

    • BLE hardware and pairing capability

    • Application processor of some type

    • Secure enclave to store credit card information and fingerprints

    • TouchID sensor with sapphire cover

    • Stylish aluminum enclosure

    • Batteries and power equipment

     

    All said and done, you're looking for at least $100/device and you wouldn't have the economies of scale that iOS devices enjoy.  Plus, it doesn't contribute to the halo of buying both an Apple computer and mobile device.  You'd also have the issue where you'd have to somehow add your credit cards to the device with no screen, camera and other equipment which makes adding your credit card to an iPhone stupid simple.

     

    Remember that the core principle of Apple Pay is that your data is not stored in the cloud or transmitted.  That means that it must be all handled on one device like your iPhone.  The only thing they could do is add it to Continuity to allow the tokenized response to be transmitted to your computer, etc.

     

    But then again... desktop/laptop computers are a dying breed.  I think in this case Apple is skating to where the puck will be instead of where it's at.


    I have no idea what 'contribute to the halo effect' means, but that aside, if Apple is interested in share of wallet by expanding the ecosystem -- and of course they are -- then this is something to consider seriously.

     

    I agree that it will need BLE hardware, SoC of some type, and a TouchID sensor (aluminum enclosure, batteries, pairing capability are already on a mouse), but I am not sure that it'll cost an extra $100. Probably far less than that. Indeed, it could even be your iPhone that is the 'mother' device (just as it would be to a watch).

     

    As to data being encrypted/stored securely and locally, I don't see what the big deal is in being able to do that on a laptop if you can do it on a phone and a tablet.

     

    As to 'laptops dying', well, unless you're in 2025 or you're a snob, not quite yet.... there are somewhere between 1B and 2B computers in use worldwide (granted, not all of them will qualify), and growth in emerging markets will grow immensely in the next few years. Hundreds of millions are sold every year, and Apple has about a 6% share of that market, which puts it in the tens of millions.

     

    And, finally, spending a few minutes once adding your credit card details using a keyboard is a big deal? C'mon... if you've actually used ApplePay on an iPhone so far -- which I am beginning to doubt -- you'll know that, other than Amex, the others still make you input some data by hand (and send you codes and such to enter).

     

    I want it to be seamless between my iPhone, iPad, AppleWatch, and Mac. In fact, I'd think it's quite a clunky and awkward payment solution if I have to reach for a phone to make an online purchase when I am already on my computer.....

  • Reply 15 of 38
    Quote:

    Originally Posted by jameskatt2 View Post



    I thought Target refused Apple Pay for its retail stores



    It did and does. But they use in their mobile app.

  • Reply 16 of 38
    jameskatt2 wrote: »
    I thought Target refused Apple Pay for its retail stores

    As others have pointed out, they accept it for online purchases.
  • Reply 17 of 38
    It occurs to me that Apple somehow needs to find a laptop/desktop solution as well, for more widespread online adoption of ApplePay. Not exactly sure of the numbers, but I have to believe that non-mobile purchases still account for a vast majority of online shopping.

    Some type of fingerprint reader hardware, perhaps? $29.99? Hello, Apple?

    I, too, believe that there needs to be a $0-$50 ($29.99 would be great) TouchID reader -- an ApplePay device that works with any platform and any browser ...

    And, I believe that ApplePay device should be a Apple/bank/cc provider/merchant-subsidized iPhone 6.

    The gift that keeps on giving -- "we will give them the rope that they use to buy more rope" ...
  • Reply 18 of 38
    I, too, believe that there needs to be a $0-$50 ($29.99 would be great) TouchID reader -- an ApplePay device that works with any platform and any browser ...

    And, I believe that ApplePay device should be a Apple/bank/cc provider/merchant-subsidized iPhone 6.

    The gift that keeps on giving -- "we will give them the rope that they use to buy more rope" ...

    Interesting idea. Perhaps banks should start demonstrating Apple Pay and selling iPhones!
  • Reply 19 of 38
    I, too, believe that there needs to be a $0-$50 ($29.99 would be great) TouchID reader -- an ApplePay device that works with any platform and any browser ...

    And, I believe that ApplePay device should be a Apple/bank/cc provider/merchant-subsidized iPhone 6.

    The gift that keeps on giving -- "we will give them the rope that they use to buy more rope" ...

    Interesting idea. Perhaps banks should start demonstrating Apple Pay and selling iPhones!

    Recently, a friend opened her first cc account -- a BofA Visa card with $2,500 limit -- included as an incentive was an instant cashback bonus of $200 for the first $1.500 she charged!

    I can visualize a similar offer for an ApplePay card -- where you use the cashback bonus to buy the iPhone -- the purchase of which, qualifies you for the cashback bonus.
  • Reply 20 of 38
    Quote:

    Originally Posted by techguy911 View Post

     

    If I can push 1 button to skip the entire data entry process, that would be a strong incentive to pick that option.  Not sure if Apple Pay has that but they should allow an online store to get your address, name, and pay all without having to fill in everything.  That's the most annoying part of ordering online, all that data entry.




    agreed. paypal does something like that where you can have items purchased via PP shipped to your PP addy on file.

     

    i use AP last week to buy something from the Target app -- an in-store pickup, so i didn't have to input anything other than my pickup name. didn't have to create an account at all. sweet.

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