Analysts see 'strong growth' of Apple Pay annually, more room to grow

Posted:
in Apple Watch
Apple Pay's usage is continuing its steadily rise in popularity, according to a report on credit and debit card transactions, with use of the Apple payment platform growing by approximately 50 percent in transaction volume within 12 months.




The data from consumer spending analytics firm TXN claims Apple Pay transactions grew by 50 percent for the month of December 2016, compared to the same month in 2015. A graph reveals usage gradually increased at the start of the year by over 30 percent in May, followed by a small drop before growth restarted for the rest of the period.

The claimed 50 percent increase in the analysis differs from information revealed by Apple itself. During the Q4 conference call last October, CEO Tim Cook mentioned Apple Pay transaction volumes were up almost 500 percent year-over-year, and the month of September was busier than what was observed throughout all of fiscal 2015.

The difference in figures likely stems from TXN's usage of a "panel of transactions from over 3 million payment cards," but it is only able to distinguish payments made with Apple Pay from others "for some of the card issuing banks."

Also revealed in the report were merchants that had the highest proportion of Apple Pay-derived transactions out of the total volume of credit card payments. The highest positions were dominated by app-based services, with HotelTonight topping the list with just under 3.5 percent of transactions stemming from Apple Pay, followed by Caviar and Postmates.




According to the data, Apple Pay makes up between 1 percent and 1.5 percent of credit card transactions for the Apple Store.

For Apple Pay at brick-and-mortar businesses, Duane Reade and Whole Foods outpace the rest, with 1.8 percent and 1.7 percent of transactions respectively. Aside from Canteen Vending, which achieved just under 1 percent, the other physical store businesses all measured at below 0.8 percent Apple Pay usage for transactions.

Among popular retail websites, Boxed.com has a 2 percent adoption rate, with Raise.com close behind and exceeding 1.5 percent.




"Apple Pay had strong growth in 2016, but still accounts for a fairly small percent of all credit card transactions, leaving lots of room for further growth," TXN summarizes. "The businesses with fastest Apple Pay adoption are unsurprisingly apps and websites popular on Apple mobile devices."
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Comments

  • Reply 1 of 27
    macxpressmacxpress Posts: 5,172member
    Oh but remember, ApplePay is a failure! Nobody uses this....

    People don't realize nothing like this just takes off. When you do a major change like this it takes quite a while to get everyone on board (Retailers, Banks, and Customers). It doesn't matter who is CEO of Apple or who is running it. This is a huge undertaking for everyone involved. This will succeed in time...patience people! Patience!
    edited January 2017 jbishop1039Rayz2016SoliStrangeDaysjbdragonwatto_cobra
  • Reply 2 of 27
    eightzeroeightzero Posts: 2,632member
    macxpress said:
    Oh but remember, ApplePay is a failure! Nobody uses this....

    People don't realize nothing like this just takes off. When you do a major change like this it takes quite a while to get everyone on board (Retailers, Banks, and Customers). It doesn't matter who is CEO of Apple or who is running it. This is a huge undertaking for everyone involved. This will succeed in time...patience people! Patience!
    Yes, but I sure wish there was a way for AAPL to incentivize the retailers into accepting ApplePay. Week after week I go to my grocery store (where I spend more dollars and have more transactions than anywhere else):
     
    "You take ApplePay yet?"
     "<shrug> don't know."
     "Can you tell your boss a customer would like it?"
     "<shrug> <rolls eyes> would you like help out sir?<deeps sigh, looks at line forming>" 
    king editor the gratejbdragonjmc54
  • Reply 3 of 27
    thedbathedba Posts: 652member
    eightzero said:
    macxpress said:
    Oh but remember, ApplePay is a failure! Nobody uses this....

    People don't realize nothing like this just takes off. When you do a major change like this it takes quite a while to get everyone on board (Retailers, Banks, and Customers). It doesn't matter who is CEO of Apple or who is running it. This is a huge undertaking for everyone involved. This will succeed in time...patience people! Patience!
    Yes, but I sure wish there was a way for AAPL to incentivize the retailers into accepting ApplePay. Week after week I go to my grocery store (where I spend more dollars and have more transactions than anywhere else):
     
    "You take ApplePay yet?"
     "<shrug> don't know."
     "Can you tell your boss a customer would like it?"
     "<shrug> <rolls eyes> would you like help out sir?<deeps sigh, looks at line forming>" 
    If you ask the clerk about Apple Pay, he/she may not know. Do they have contactless payments (aka tap and Pay)? If yes, then by definition Apple Pay works. Ever since Canadian banks got on board, most of my day to day shopping is now done through Apple Pay. I would say the ratio is now between 60-65%, all through Apple Pay.
    StrangeDayswatto_cobrajmc54brucemc
  • Reply 4 of 27
    slurpyslurpy Posts: 5,317member
    I wish Apple could implement some kind of reward system through Apple Pay, like cashback, or collecting points to use for the purchase of Apple products/services. Would really incentivize people to try it and use it.
    wigbySoliwatto_cobra
  • Reply 5 of 27
    wigbywigby Posts: 692member
    thedba said:
    eightzero said:
    macxpress said:
    Oh but remember, ApplePay is a failure! Nobody uses this....

    People don't realize nothing like this just takes off. When you do a major change like this it takes quite a while to get everyone on board (Retailers, Banks, and Customers). It doesn't matter who is CEO of Apple or who is running it. This is a huge undertaking for everyone involved. This will succeed in time...patience people! Patience!
    Yes, but I sure wish there was a way for AAPL to incentivize the retailers into accepting ApplePay. Week after week I go to my grocery store (where I spend more dollars and have more transactions than anywhere else):
     
    "You take ApplePay yet?"
     "<shrug> don't know."
     "Can you tell your boss a customer would like it?"
     "<shrug> <rolls eyes> would you like help out sir?<deeps sigh, looks at line forming>" 
    If you ask the clerk about Apple Pay, he/she may not know. Do they have contactless payments (aka tap and Pay)? If yes, then by definition Apple Pay works. Ever since Canadian banks got on board, most of my day to day shopping is now done through Apple Pay. I would say the ratio is now between 60-65%, all through Apple Pay.
    Apple Pay requires tap to pay hardware but that doesn't mean it will work. There is a software switch that must be turned on in order for it to work. I've been to many contactless POS retailers. Some know about about Apple Pay and some do not. I have not been able to use Apple Pay in either of these establishments but once they do set it up, it just works and is great.
    watto_cobra
  • Reply 6 of 27
    wigbywigby Posts: 692member

    slurpy said:
    I wish Apple could implement some kind of reward system through Apple Pay, like cashback, or collecting points to use for the purchase of Apple products/services. Would really incentivize people to try it and use it.
    It's tough for Apple to negotiate deals with each and every retailer and/or bank and/or credit card company just for points or rewards. They all have their own systems so Apple might get caught up in too many details to roll out something big. But they could easily offer Apple Store or App Store rewards points. I already use Apple Pay in all of my major shopping excursions but I would go out of my way to use it if they offered points to discount Apple Store hardware or software.
  • Reply 7 of 27
     slurpy said: I wish Apple could implement some kind of reward system through Apple Pay, like cashback, or collecting points to use for the purchase of Apple products/services. Would really incentivize people to try it and use it.
    I use ApplePay wherever I can but Apple can't even link purchases made with ApplePay in the Apple Store to your Apple Account. I wouldn't hold my breath waiting for "typical" credit card promo-features directly connected to your ApplePay transaction.
  • Reply 8 of 27
    thedba said:
    eightzero said:
    macxpress said:
    Oh but remember, ApplePay is a failure! Nobody uses this....

    People don't realize nothing like this just takes off. When you do a major change like this it takes quite a while to get everyone on board (Retailers, Banks, and Customers). It doesn't matter who is CEO of Apple or who is running it. This is a huge undertaking for everyone involved. This will succeed in time...patience people! Patience!
    Yes, but I sure wish there was a way for AAPL to incentivize the retailers into accepting ApplePay. Week after week I go to my grocery store (where I spend more dollars and have more transactions than anywhere else):
     
    "You take ApplePay yet?"
     "<shrug> don't know."
     "Can you tell your boss a customer would like it?"
     "<shrug> <rolls eyes> would you like help out sir?<deeps sigh, looks at line forming>" 
    If you ask the clerk about Apple Pay, he/she may not know. Do they have contactless payments (aka tap and Pay)? If yes, then by definition Apple Pay works. Ever since Canadian banks got on board, most of my day to day shopping is now done through Apple Pay. I would say the ratio is now between 60-65%, all through Apple Pay.
    upfront - sorry for spelling / grammar.
    I like ApplePay - and I use it as often as possible where it affords convenience and (more) security - but in the US its just not as good as it could be - take your above comments - these are not isolated examples, but I will offer some recent experiences..
    • at my regular McDonalds drive thro (I like their apple pie)  - suddenly no Apple Pay is available at drive thro' spoke to their manager who told me it works fine - but you need server "to take your phone to SCAN it indoors - " I'm like so how does the finger print bit work then - she didn't know but suggested I use cash in the drive thro 
    • at a grocery store (Harris Teeter)- all 4 of self checkout are "Apple Pay enabled" they have a sign - bit only one works - the other 3 will "NOT approve"
    • At food lion - even though I am trying to use my saved debit card you have to select credit card to or it won't approve ( I don't have this issue anywhere else)
    • AT BJ's wholesale - worked for weeks, then one nigh card not approved - despite trying with 3 saved cards. - had to resort to using physical card
    • At HomeDepot - AP did work in the early days - then they stopped it - then it worked for months - now its disabled again
    Even the way you use it - especially if you have a loyalty card is annoyingly different (best is Walgreens) varies too much - sign/dontsign pin / no pin
    Wawa have awful system (worse than Starbucks) to use AP inside, BUT some of their gas pumps conveniently AP enabled ( slick too)

    Lastly its just not enabled still at too many places in USA, or worse, its deliberately disabled. I wonder if Target will be the next to disable it 

  • Reply 9 of 27
    SoliSoli Posts: 10,030member
    slurpy said:
    I wish Apple could implement some kind of reward system through Apple Pay, like cashback, or collecting points to use for the purchase of Apple products/services. Would really incentivize people to try it and use it.
    Not just Apple, but the financial institution could offer lower charges to vendors and higher rewards to card holders because the service does mean they are likely to have to deal with theft or remove purchases from a card due to theft
    watto_cobra
  • Reply 10 of 27
    thedbathedba Posts: 652member
    wigby said:
    thedba said:
    eightzero said:
    macxpress said:
    Oh but remember, ApplePay is a failure! Nobody uses this....

    People don't realize nothing like this just takes off. When you do a major change like this it takes quite a while to get everyone on board (Retailers, Banks, and Customers). It doesn't matter who is CEO of Apple or who is running it. This is a huge undertaking for everyone involved. This will succeed in time...patience people! Patience!
    Yes, but I sure wish there was a way for AAPL to incentivize the retailers into accepting ApplePay. Week after week I go to my grocery store (where I spend more dollars and have more transactions than anywhere else):
     
    "You take ApplePay yet?"
     "<shrug> don't know."
     "Can you tell your boss a customer would like it?"
     "<shrug> <rolls eyes> would you like help out sir?<deeps sigh, looks at line forming>" 
    If you ask the clerk about Apple Pay, he/she may not know. Do they have contactless payments (aka tap and Pay)? If yes, then by definition Apple Pay works. Ever since Canadian banks got on board, most of my day to day shopping is now done through Apple Pay. I would say the ratio is now between 60-65%, all through Apple Pay.
    Apple Pay requires tap to pay hardware but that doesn't mean it will work. There is a software switch that must be turned on in order for it to work. I've been to many contactless POS retailers. Some know about about Apple Pay and some do not. I have not been able to use Apple Pay in either of these establishments but once they do set it up, it just works and is great.
    I have never heard of any such restrictions. Is it possible that it may be US (or individual State) issue?
    The only restrictions that I know of are:   $100 (Can) limit for debit card transactions and $200 for credit card. But this is not a mobile payments restriction per se. It's the limit the Canadian banks have set for contactless payments, whether through an iPhone or an actual card. 

    In fact I also tried Apple Pay last summer while vacationing in Greece.  I noticed that some card machines had the contactless symbol and passed my phone over it. Worked without a hitch.  To my knowledge none of the Greek banks have supported Apple Pay yet. 
    watto_cobra
  • Reply 11 of 27
    mygigmygig Posts: 35member
    there is still a huge number of people like me waiting for ApplePay in EU and there are NFC terminals in 95% of stores.. :/
  • Reply 12 of 27
    macxpressmacxpress Posts: 5,172member
    mygig said:
    there is still a huge number of people like me waiting for ApplePay in EU and there are NFC terminals in 95% of stores.. :/
    Keep bothering your financial institution. Get others using the same institution to do the same. If enough people keep asking they will most likely start supporting it. 
    Soliwatto_cobra
  • Reply 13 of 27
    StrangeDaysStrangeDays Posts: 11,566member
    wigby said:
    thedba said:
    eightzero said:
    macxpress said:
    Oh but remember, ApplePay is a failure! Nobody uses this....

    People don't realize nothing like this just takes off. When you do a major change like this it takes quite a while to get everyone on board (Retailers, Banks, and Customers). It doesn't matter who is CEO of Apple or who is running it. This is a huge undertaking for everyone involved. This will succeed in time...patience people! Patience!
    Yes, but I sure wish there was a way for AAPL to incentivize the retailers into accepting ApplePay. Week after week I go to my grocery store (where I spend more dollars and have more transactions than anywhere else):
     
    "You take ApplePay yet?"
     "<shrug> don't know."
     "Can you tell your boss a customer would like it?"
     "<shrug> <rolls eyes> would you like help out sir?<deeps sigh, looks at line forming>" 
    If you ask the clerk about Apple Pay, he/she may not know. Do they have contactless payments (aka tap and Pay)? If yes, then by definition Apple Pay works. Ever since Canadian banks got on board, most of my day to day shopping is now done through Apple Pay. I would say the ratio is now between 60-65%, all through Apple Pay.
    Apple Pay requires tap to pay hardware but that doesn't mean it will work. There is a software switch that must be turned on in order for it to work. I've been to many contactless POS retailers. Some know about about Apple Pay and some do not. I have not been able to use Apple Pay in either of these establishments but once they do set it up, it just works and is great.
    It's not necessarily true that they have to switch it on for AP specifically. They have to turn on NFC transactions (tap to pay), but it's been my experience that if this is enabled it works for AP always. Exception being CVS, who specifically blocks AP. I've surprised many retailers when using my iPhone at their POS terminal and they didn't even know it would work.
    Solichiawatto_cobra
  • Reply 14 of 27
    StrangeDaysStrangeDays Posts: 11,566member

    onlyhope said:
     slurpy said: I wish Apple could implement some kind of reward system through Apple Pay, like cashback, or collecting points to use for the purchase of Apple products/services. Would really incentivize people to try it and use it.
    I use ApplePay wherever I can but Apple can't even link purchases made with ApplePay in the Apple Store to your Apple Account.
    That's kind of expected -- the AP transactions use various card tokens and none of them need to be your iTunes credit card. 
    watto_cobra
  • Reply 15 of 27
    larryjwlarryjw Posts: 832member
    onlyhope said:
     slurpy said: I wish Apple could implement some kind of reward system through Apple Pay, like cashback, or collecting points to use for the purchase of Apple products/services. Would really incentivize people to try it and use it.
    I use ApplePay wherever I can but Apple can't even link purchases made with ApplePay in the Apple Store to your Apple Account. I wouldn't hold my breath waiting for "typical" credit card promo-features directly connected to your ApplePay transaction.
    Of course you can't link Apple Pay with your account. That's part of Apple Pay's design -- to prevent vendors from tracking your purchases. It acts like you're paying with cash from the vendors view. 
    Solichiawatto_cobra
  • Reply 16 of 27
    eugeeuge Posts: 19member
    wigby said:
    thedba said:
    eightzero said:
    macxpress said:
    Oh but remember, ApplePay is a failure! Nobody uses this....

    People don't realize nothing like this just takes off. When you do a major change like this it takes quite a while to get everyone on board (Retailers, Banks, and Customers). It doesn't matter who is CEO of Apple or who is running it. This is a huge undertaking for everyone involved. This will succeed in time...patience people! Patience!
    Yes, but I sure wish there was a way for AAPL to incentivize the retailers into accepting ApplePay. Week after week I go to my grocery store (where I spend more dollars and have more transactions than anywhere else):
     
    "You take ApplePay yet?"
     "<shrug> don't know."
     "Can you tell your boss a customer would like it?"
     "<shrug> <rolls eyes> would you like help out sir?<deeps sigh, looks at line forming>" 
    If you ask the clerk about Apple Pay, he/she may not know. Do they have contactless payments (aka tap and Pay)? If yes, then by definition Apple Pay works. Ever since Canadian banks got on board, most of my day to day shopping is now done through Apple Pay. I would say the ratio is now between 60-65%, all through Apple Pay.
    Apple Pay requires tap to pay hardware but that doesn't mean it will work. There is a software switch that must be turned on in order for it to work. I've been to many contactless POS retailers. Some know about about Apple Pay and some do not. I have not been able to use Apple Pay in either of these establishments but once they do set it up, it just works and is great.
    There probably is some configuration that will affect whether Apple Pay will work with tap to pay hardware. But based on my experience it will work by default at most retailers, and I don't think the configuration is specific to Apple Pay. I used Apple Pay at the Container Store like a month after Apple Pay was introduced and it worked fine. I also used it in Prague twice where Apple Pay isn't even supported by the country yet. But in Iceland it didn't work even though the tap to pay symbol was on all the machines. Though before I went there, I had read in a few forums that none of Iceland's retail POS supports Apple Pay for whatever reason so I wasn't surprised. I tried it in two places just to confirm.
    watto_cobra
  • Reply 17 of 27
    LouiscampLouiscamp Posts: 1unconfirmed, member
    Thedba, looks like we Canadians with our strong banking system have our act together! Everything you stated is right on the money. I use it everywhere in Canada and in Europe. Contactless payment is much more available. I only had one terminal with contactless not working. In Europe I was able to use it even in restaurants as there is no tipping and their terminals allows you to pay contactless as the due amount is shown from the get go. Not in Canada & USA as restaurant terminals have the extra tipping step prompt throwing off the ease of going contactless!
    watto_cobra
  • Reply 18 of 27
    jbdragonjbdragon Posts: 2,246member
    thedba said:
    eightzero said:
    macxpress said:
    Oh but remember, ApplePay is a failure! Nobody uses this....

    People don't realize nothing like this just takes off. When you do a major change like this it takes quite a while to get everyone on board (Retailers, Banks, and Customers). It doesn't matter who is CEO of Apple or who is running it. This is a huge undertaking for everyone involved. This will succeed in time...patience people! Patience!
    Yes, but I sure wish there was a way for AAPL to incentivize the retailers into accepting ApplePay. Week after week I go to my grocery store (where I spend more dollars and have more transactions than anywhere else):
     
    "You take ApplePay yet?"
     "<shrug> don't know."
     "Can you tell your boss a customer would like it?"
     "<shrug> <rolls eyes> would you like help out sir?<deeps sigh, looks at line forming>" 
    If you ask the clerk about Apple Pay, he/she may not know. Do they have contactless payments (aka tap and Pay)? If yes, then by definition Apple Pay works. Ever since Canadian banks got on board, most of my day to day shopping is now done through Apple Pay. I would say the ratio is now between 60-65%, all through Apple Pay.
    I went to Togo's and I guess they had a New terminal and I saw the NFC symbol on screen so I asked if they took Apple Pay, the person there said she didn't think so, but I tried it with my Apple Watch and it went though. Then the other person there said something about it supposedly was suppose to be Disabled. They wanted me to sign the receipt like normal, but on it is said No Signature Required. Which they though was strange, and I ended up signing it anyway down below. I'm using it at more and more places, but around half of the places don't say anything about supporting Apple Pay. I just see the NFC symbol and so I give it a try and sometimes it works and other times it doesn't. I try to use it as much as I can. I've had fraud issues in the past, in fact 3 years in a row a few years back. None since using Apple Pay for whatever that's worth. So I use Apple Pay as much as I can in stores and PayPal online as Apple Pay is hardly anywhere online. Anything so I don't have to give out my credit card number. That's last resort.
    chiawatto_cobra
  • Reply 19 of 27
    jbdragonjbdragon Posts: 2,246member
    upfront - sorry for spelling / grammar.
    I like ApplePay - and I use it as often as possible where it affords convenience and (more) security - but in the US its just not as good as it could be - take your above comments - these are not isolated examples, but I will offer some recent experiences..
    • at my regular McDonalds drive thro (I like their apple pie)  - suddenly no Apple Pay is available at drive thro' spoke to their manager who told me it works fine - but you need server "to take your phone to SCAN it indoors - " I'm like so how does the finger print bit work then - she didn't know but suggested I use cash in the drive thro 
    • at a grocery store (Harris Teeter)- all 4 of self checkout are "Apple Pay enabled" they have a sign - bit only one works - the other 3 will "NOT approve"
    • At food lion - even though I am trying to use my saved debit card you have to select credit card to or it won't approve ( I don't have this issue anywhere else)
    • AT BJ's wholesale - worked for weeks, then one nigh card not approved - despite trying with 3 saved cards. - had to resort to using physical card
    • At HomeDepot - AP did work in the early days - then they stopped it - then it worked for months - now its disabled again
    Even the way you use it - especially if you have a loyalty card is annoyingly different (best is Walgreens) varies too much - sign/dontsign pin / no pin
    Wawa have awful system (worse than Starbucks) to use AP inside, BUT some of their gas pumps conveniently AP enabled ( slick too)

    Lastly its just not enabled still at too many places in USA, or worse, its deliberately disabled. I wonder if Target will be the next to disable it 

    Target has NEVER accepted Apple Pay in Store. Target was one of the first to Accept Apple pay ONLINE and as far as I know they still do. Never in the store unless they have gotten new terminals recently. I haven't been to Target in a while. McDonalds, Ya, not sure how exactly that works in a drive through or any other drive through at this time. I know a few years back Jack In the Box had Terminals mounted outside the window to allow card swiping and I think NFC transactions, but like many other places, before Apple Pay, few people were using those keyfob things or Google Wallet. So many business were yanking them. Then Apple Pay came along and started turning that back around, and Samesung Pay and Android Pay. Some places now have all of these listed on the large screen terminals. Home Depot did work, then they disabled them, but they did say in the past that Apple Pay support was coming. Why it's taking so long? http://appleinsider.com/articles/15/05/05/home-depot-to-become-largest-retailer-to-support-apple-pay Raley's Supermarket's where I live, and there's 2 in my town accept Apple Pay and the others now. I've had no problem at them. Either Self check out or a normal check out. It's worked just fine at Food Max even though they didn't know they Supported Apple Pay the few times I've been there. Subway has been just fine. Pizza Hut and Mountain Mikes Pizza has worked. The places I get gas at, none support Apple Pay, but also Gas Stations don't have to upgrade their Pump Terminals until 2020. Because it's a lot more costly. So I expect that to change in time. I'm not going to go load a App and pay that way for each place I go to. No thanks!!!!
    watto_cobra
  • Reply 20 of 27
    Really wish it was in more stores. Whenever it is available, I much prefer it over a credit card.
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