Led by Whole Foods shoppers, Apple Pay accounted for 1% of digital payment dollars in November
According to a new report from research firm ITG, Apple Pay's first full month of service accounted for one percent of all digital payment dollars, an impressive statistic that suggests Apple's payments solution is being used by general consumers, not just early adopters.
ITG's numbers point to strong consumer engagement, with 60 percent of Apple Pay users making multiple purchases throughout November, reports MarketWatch. By comparison, only 20 percent of customers who recently signed on to PayPal's competing mobile solution used the service more than once over the same period.
The average Apple Pay user clocked about 1.4 transactions per week, the report said. Apple first activated the service on iPhone 6 and iPhone 6 Plus handsets with an update to iOS 8 in late October.
On a per-merchant level, Apple Pay exhibited "stickiness" as customers who tried out the service continued to use it for future purchases at the same retailer about 66 percent of the time. After initially adopting Apple Pay, the average customer returned to the service for about 5.3 percent of all future card transactions and 2.3 percent of all future card dollars spent.
Research also assigned numbers to top Apple Pay retailers, including Whole Foods and Walgreens, which accounted for 20 percent and 19 percent of all Apple Pay transactions in November, respectively. Whole Foods was also responsible for 28 percent of Apple Pay dollars, while Walgreens generated a lower per-transaction value to account for 12 percent of total dollars.
McDonald's and Panera Bread trailed with 11 percent and 6 percent of transactions, while Subway rounded out the top five with a 3 percent share.
ITG labels Apple Pay a tangible threat to PayPal's dominant position in the mobile payments sector, something analysts alluded to in September. While PayPal has a head start, Apple's seamless integration with the iPhone's Touch ID fingerprint recognition system is considered to be a more convenient and secure option for consumers.
Apple Pay is currently limited to the U.S., but job listings in Europe and China suggest an international rollout is in the offing.
ITG's numbers point to strong consumer engagement, with 60 percent of Apple Pay users making multiple purchases throughout November, reports MarketWatch. By comparison, only 20 percent of customers who recently signed on to PayPal's competing mobile solution used the service more than once over the same period.
The average Apple Pay user clocked about 1.4 transactions per week, the report said. Apple first activated the service on iPhone 6 and iPhone 6 Plus handsets with an update to iOS 8 in late October.
On a per-merchant level, Apple Pay exhibited "stickiness" as customers who tried out the service continued to use it for future purchases at the same retailer about 66 percent of the time. After initially adopting Apple Pay, the average customer returned to the service for about 5.3 percent of all future card transactions and 2.3 percent of all future card dollars spent.
Research also assigned numbers to top Apple Pay retailers, including Whole Foods and Walgreens, which accounted for 20 percent and 19 percent of all Apple Pay transactions in November, respectively. Whole Foods was also responsible for 28 percent of Apple Pay dollars, while Walgreens generated a lower per-transaction value to account for 12 percent of total dollars.
McDonald's and Panera Bread trailed with 11 percent and 6 percent of transactions, while Subway rounded out the top five with a 3 percent share.
ITG labels Apple Pay a tangible threat to PayPal's dominant position in the mobile payments sector, something analysts alluded to in September. While PayPal has a head start, Apple's seamless integration with the iPhone's Touch ID fingerprint recognition system is considered to be a more convenient and secure option for consumers.
Apple Pay is currently limited to the U.S., but job listings in Europe and China suggest an international rollout is in the offing.
Comments
1% in the States? Not so much.
It’s not like our economy keeps the world running or anything.
Care to explain?
1% is pretty damn impressive after a month for only the newest phones.
I haven't used it yet since Discover isn't on it yet.
Discover not being on Apple Pay is one of the reasons I changed to Capital One. That and more cash back.
What's a digital payment dollar? Is that including all credit cards, debit cards and phone e-wallets?
If so, 1% is an amazing start for the first month. No dollar values in the article, but that's got to be handing some hefty change over to Apple in the run up to Christmas, even if their cut is a small proportion.
Care to explain?
MR states, "Apple still trails industry leaders like Square and PayPal, which captured 18 and 78 percent of digital payment dollars in November, respectively, but ITG…"
MR states, "Apple still trails industry leaders like Square and PayPal, which captured 18 and 78 percent of digital payment dollars in November, respectively, but ITG…"
Oh. That's a whole lot less impressive then. Still a good start though, especially given that there's only so many retailers with the hardware deployed to take ?Pay
Jobs said he wanted 1% of the handset market in a year. He was talking about the global handset market which he stated was 1 billion units, even though the iPhone was only to be released in the US and then only 4(?) countries stated for release later on in the cycle.
I don't know what measure he's using for payments or what dollar value he's applied but it's certainly not a trollish statement. You could say it's dismissive, but I think it's too ambiguous to cause an inflammatory response.
I don't know what measure he's using for payments or what dollar value he's applied but it's certainly not a trollish statement. You could say it's dismissive, but I think it's too ambiguous to cause an inflammatory response.
I disagree. Everything Frosty says is part of his overall tactic of disrupting threads into his narrative of Apple being in trouble because Tim Cook isn't Steve Jobs and supports the wrong politics, and is distracted by rainbows, and the ?Watch is ugly, and whine whine whine Christmas.
He's an attention-seeking whiny troll, with every single damn post. About time he was banned.
As Solip just put it succinctly.
Perhaps I sounded cryptic, but I guess I thought that the reference would be clear on AI.
One would expect Apple customers to punch well above their weight, so the 1% in the States I imagine to be much less than 1% of the population.
If they rolled it out with the aggression that Apple used to have, I would have thought they might make it to 1% globally. With their current intermittent rollouts, I'm not so sure. Thinking of iTunes Radio here.
He certainly has his trigger topics, which Tim Cook, the larger iPhone, and ?Watch are all part of, but i don't think for a second he's making them up so he troll threads. I believe he feels strongly about his negative positions on those subjects. I think I've been clear that I feel his positions are either morally wrong or just plain stupid, but I don't think he's trolling. In fact, the only argumentative issue I see in this thread is you calling him a troll instead of referring to his comment as trollish.
They used to support NFC-based payments with Google Wallet. Perhaps they still do.
That said, I wonder if the data includes all the non-'ApplePay', just plain NFC terminals where one can use the iPhone 6, but have to still go through the process of signing, etc.
He certainly has his trigger topics, which Tim Cook, the larger iPhone, and ?Watch are all part of, but i don't think for a second he's making them up so he troll threads. I believe he feels strongly about his negative positions on those subjects. I think I've been clear that I feel his positions are either morally wrong or just plain stupid, but I don't think he's trolling. In fact, the only argumentative issue I see in this thread is you calling him a troll instead of referring to his comment as trollish.
Benjamin Frost has posted and said that he likes to troll here.
Then again, Tallest Skil has done the same. TS claims that he never made such a post, which is a lie (unless his account had been hacked), but the more important fact is that he currently claims that he is not here to troll. I'm a believer that one can change their ways, but actions certainly speak louder then words.
To my knowledge BF has never made such a post rescinding his desire to troll here.
OK, gotcha ...:D
What exactly is covered under "digital commerce"? Clearly not e-commerce in general since PayPal has a pretty small overall market share (something like 10% I think). So if PayPal has 78% of "digital commerce", I'm guessing it's some reference to mobile checkouts, maybe even to non-traditional checkout methods, and some small subset of broader e-commerce.