Apple Pay now accepted by 36% of US merchants, is most common mobile payment platform

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Displacing former leader PayPal, Apple Pay is now the most commonly accepted mobile payment platform among U.S. merchants, according to newly-published survey data.




Apple today sits at 36 percent versus 16 percent a year ago, said Boston Retail Partners, quoted by NFC World. PayPal, by contrast, is being offered by 34 percent of merchants.

Apple and PayPal are trailed by MasterCard PayPass (25 percent), Android Pay (24 percent), Visa Checkout (20 percent), Samsung Pay (18 percent) and Chase Pay (11 percent). Notably, Samsung Pay can be used at businesses that don't officially support the platform.

About 22 percent of businesses are planning to adopt Apple Pay within the next 12 months, while 11 percent are expecting support in the next 1 to 3 years, BRP said. Some 31 percent, however, are maintaining a wait-and-see stance.

U.S. merchant adoption has been of the biggest obstacles for Apple Pay. Though a number of major chains are onboard, many still aren't, likely owing to the cost of upgrading to sale terminals with compatible NFC.

Small businesses are potentially more flexible, though the extent of their Apple Pay adoption is unknown. Recently Apple and Square partnered to promote the latter's compatible card reader.

During a recent results call, Apple said that global Apple Pay transactions were up 500 percent year-over-year in the December quarter, backed by triple the number of users.
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Comments

  • Reply 1 of 49
    MacProMacPro Posts: 18,443member
    So yet another Apple product takes the lead.  Well done Apple.  1 Trillion $ value for Apple can't be far off, 2018 maybe?
    schlackpatchythepiratelostkiwiwatto_cobra
  • Reply 2 of 49
    mike1mike1 Posts: 1,941member
    I don't think I've seen a merchant accept Apple Pay in-store, without showing they also accept Android Pay. Seems like once they make the leap to mobile payments, they do both.
    randominternetpersonschlack
  • Reply 3 of 49
    Does anybody know the revenue Apple pay is generating or does Apple not directly report this and lump it into services?
    watto_cobra
  • Reply 4 of 49
    eightzeroeightzero Posts: 2,503member

    U.S. merchant adoption has been of the biggest obstacles for Apple Pay. Though a number of major chains are onboard, many still aren't, likely owing to the cost of upgrading to sale terminals with compatible NFC.
    It would seem logical for Apple to pick up the tab.
  • Reply 5 of 49
    lkrupplkrupp Posts: 7,449member
    mike1 said:
    I don't think I've seen a merchant accept Apple Pay in-store, without showing they also accept Android Pay. Seems like once they make the leap to mobile payments, they do both.
    So apparently your anecdotal rebuttal is wrong. Apple Pay dominates the various other NFC payment choices. 
    watto_cobra
  • Reply 6 of 49
    mike1mike1 Posts: 1,941member
    lkrupp said:
    mike1 said:
    I don't think I've seen a merchant accept Apple Pay in-store, without showing they also accept Android Pay. Seems like once they make the leap to mobile payments, they do both.
    So apparently your anecdotal rebuttal is wrong. Apple Pay dominates the various other NFC payment choices. 
    Wasn't a rebuttal, just my observations. Be nice to see a chart with merchants and the payment types they accept in-store.
    schlacklostkiwirandominternetperson
  • Reply 7 of 49
    schlackschlack Posts: 703member
    I'd like to use/support Apple Pay as an Apple fan and shareholder. But, I've rarely been to a store where it's obvious they support Apple Pay. Sometimes I notice after the fact that they do. Most times, it seems they don't. Also, my credit card (Chase) is not accepted by Apple Pay.
  • Reply 8 of 49
    eightzeroeightzero Posts: 2,503member
    My favorite thing is going into a store and paying with my samsung gear S3, and having the cashier go "oh we dont do the apple pay thing" and then it goes BEEEP, and a receipt spits out and they are like huh??? Samsung pays works EVERYWHERE, so amazing to not have to carry a wallet ever or worry about whether a place accepts samsung pay or not. I am sure apple will get there eventually, in a few years......
    I'm curious: are you saying that there are contactless NFC terminals that will take Samsung pays, but not Apple Pay? I too have had the experience where the clerk doesn't know what they take or how it works, yet I complete the transaction from my Apple Watch and Apple Pay.

    schlack said:
    ... my credit card (Chase) is not accepted by Apple Pay.
    Chase supports Apple Pay:
    https://www.chase.com/digital/digital-payments/apple-pay/faqs/how-to-use

     
    patchythepirateMikeymikelostkiwiwatto_cobramike1StrangeDaysGeorgeBMac
  • Reply 9 of 49
    NY1822NY1822 Posts: 616member
    jmey267 said:
    Does anybody know the revenue Apple pay is generating or does Apple not directly report this and lump it into services?
    approx. .15 cents for every $100 apple pay transaction. In 2015 the total apple pay transactions were $10.9 Billion.
    2015 worldwide mobile transaction volume was 450 billion....2019 projected is 1,080 billion. If using this projection, if Apple captured 30% of mobile transactions worldwide, they would make $4.5 Billion
    edited February 2017 patchythepirateslprescott
  • Reply 10 of 49
    eightzero said:

    U.S. merchant adoption has been of the biggest obstacles for Apple Pay. Though a number of major chains are onboard, many still aren't, likely owing to the cost of upgrading to sale terminals with compatible NFC.
    It would seem logical for Apple to pick up the tab.
    I fail to see the logic in that statement.
    watto_cobraStrangeDays
  • Reply 11 of 49
    eightzeroeightzero Posts: 2,503member
    cityguide said:
    eightzero said:

    U.S. merchant adoption has been of the biggest obstacles for Apple Pay. Though a number of major chains are onboard, many still aren't, likely owing to the cost of upgrading to sale terminals with compatible NFC.
    It would seem logical for Apple to pick up the tab.
    I fail to see the logic in that statement.
    "I can't afford your products."
    "I could make them less expensive to you. I could give you a discount based on the volume of future business."
    "Hey, that would be nice. Thanks."

    patchythepirate
  • Reply 12 of 49
    mjtomlinmjtomlin Posts: 2,028member
    eightzero said:
    My favorite thing is going into a store and paying with my samsung gear S3, and having the cashier go "oh we dont do the apple pay thing" and then it goes BEEEP, and a receipt spits out and they are like huh??? Samsung pays works EVERYWHERE, so amazing to not have to carry a wallet ever or worry about whether a place accepts samsung pay or not. I am sure apple will get there eventually, in a few years......
    I'm curious: are you saying that there are contactless NFC terminals that will take Samsung pays, but not Apple Pay? I too have had the experience where the clerk doesn't know what they take or how it works, yet I complete the transaction from my Apple Watch and Apple Pay.
     

    No. Samsung uses a technology that can wirelessly transmit credit information directly to the reader, just as if you've swiped your card.

    This poster is obviously completely unaware the main reason for using something like Apple Pay is for security and privacy. Samsung's technology is actually less secure than swiping your card, because the data that is normally stored on the back of your card is being transmitted. So someone could pick up the info without the consumer even realizing that their CC has just been stolen.
    edited February 2017 pscooter63eightzeroradarthekatidreylostkiwiwatto_cobraRayz2016randominternetpersonmike1StrangeDays
  • Reply 13 of 49
    SoliSoli Posts: 9,358member
    mike1 said:
    I don't think I've seen a merchant accept Apple Pay in-store, without showing they also accept Android Pay. Seems like once they make the leap to mobile payments, they do both.
    Yes and no. From the merchant's end, the key is supporting NFC-based payments. However, it's possible that the one or more NFC-based payment systems could be blocked by the retailer or intermediary, but what's this article is probably talking about are the financial institutions that are supporting Apple Pay. While Google Wallet has been killed so they can piggyback on the Apple Pay system under the bank's control, I don't think that all the banks are supporting Android Pay as much as Apple Pay. The same goes for Samsung Pay* and any other service that uses the same the referential card number ties to your physical card number linked to a mobile device.


    * The secure version that mirrors how Apple Pay works, not the insecure and obsolecing LoopPay-based syatem Samsung bought.
    edited February 2017
  • Reply 14 of 49
    mike1 said:
    I don't think I've seen a merchant accept Apple Pay in-store, without showing they also accept Android Pay. Seems like once they make the leap to mobile payments, they do both.
    Good observation. Yet another area where google is riding Apple's coattails. Same thing happened with the app store. Everyone wanted to seem impartial, so after google copied the App Store, both platforms were promoted simultaneously, even in google play's infancy. And, like the App Store (even more so), Apple is dominating in terms of revenue/profit. When is google going to start pulling its own weight?
    lostkiwirandominternetperson
  • Reply 15 of 49
    glynhglynh Posts: 132member
    My favorite thing is going into a store and paying with my samsung gear S3, and having the cashier go "oh we dont do the apple pay thing" and then it goes BEEEP, and a receipt spits out and they are like huh??? Samsung pays works EVERYWHERE, so amazing to not have to carry a wallet ever or worry about whether a place accepts samsung pay or not. I am sure apple will get there eventually, in a few years......
    So what part of the...

    Apple Pay 36%
    PayPal 34%
    MasterCard PayPass 25%
    Android Pay 24%
    Visa Checkout 20%
    *Samsung Pay 18%*
    Chase Pay 11%

    ...didn't you understand?

    I am sure samsung will get there eventually, in a few years......

    /s
    edited February 2017 radarthekatMikeymikeSpamSandwichStrangeDays
  • Reply 16 of 49
    paxmanpaxman Posts: 4,615member
    I am finding most places accept Apple Pay here in Canada, but then chip cards have been around for a long time. My issue is the $100.- limit. Why not $500.-?
    lostkiwi
  • Reply 17 of 49
    brucemcbrucemc Posts: 1,540member
    NY1822 said:
    jmey267 said:
    Does anybody know the revenue Apple pay is generating or does Apple not directly report this and lump it into services?
    approx. .15 cents for every $100 apple pay transaction. In 2015 the total apple pay transactions were $10.9 Billion.
    2015 worldwide mobile transaction volume was 450 billion....2019 projected is 1,080 billion. If using this projection, if Apple captured 30% of mobile transactions worldwide, they would make $4.5 Billion
    The figues in terms of per $100 amount transacted you quoted are what is suspected for USA (though it has never been publicly released). It is also rumoured that other countries are less, and have caps on amount per customer.  With the overall technology standardized now, It is hard to see Apple getting huge revenues through it when only supporting existing credit and bank transactions (perhaps a billion or two to the bottom line). Now if they do something in the person to person space, perhaps that could drive more revenue. 
  • Reply 18 of 49
    idreyidrey Posts: 643member
    lkrupp said:
    mike1 said:
    I don't think I've seen a merchant accept Apple Pay in-store, without showing they also accept Android Pay. Seems like once they make the leap to mobile payments, they do both.
    So apparently your anecdotal rebuttal is wrong. Apple Pay dominates the various other NFC payment choices. 
    It sounded more like an observation from him, not a rebuttal. I have also notice the same, most of the places I have seen that accept Apple Pay also accept Android pay. I have seen more people use Apple Pay, well actually I haven seen anyone use Android Pay yet.  I also have notice that where they accept both, Apple Pay is advertise more than the Android Pay option. So I am assuming merchants are implementing both at the same time to save on cost.
    randominternetpersonmike1
  • Reply 19 of 49
    SoliSoli Posts: 9,358member
    paxman said:
    I am finding most places accept Apple Pay here in Canada, but then chip cards have been around for a long time. My issue is the $100.- limit. Why not $500.-?
    1) I'm getting the connection between chip-capable and NFC-capable payment systems in your comment. While these are newer technologies that are often included in the same device, it's not a guarantee or a requirement.

    2) The low-limit is probably because pre-Apple Pay NFC-based payments were insecure. I'm sure we'll see this improve in time. Most places I use Apple Pay still want me to sign, which has always been part of "security theatre" and is even more ridiculous when using Apple Pay.
    lostkiwirandominternetperson
  • Reply 20 of 49
    idreyidrey Posts: 643member
    eightzero said:
    My favorite thing is going into a store and paying with my samsung gear S3, and having the cashier go "oh we dont do the apple pay thing" and then it goes BEEEP, and a receipt spits out and they are like huh??? Samsung pays works EVERYWHERE, so amazing to not have to carry a wallet ever or worry about whether a place accepts samsung pay or not. I am sure apple will get there eventually, in a few years......
    I'm curious: are you saying that there are contactless NFC terminals that will take Samsung pays, but not Apple Pay? I too have had the experience where the clerk doesn't know what they take or how it works, yet I complete the transaction from my Apple Watch and Apple Pay.

    schlack said:
    ... my credit card (Chase) is not accepted by Apple Pay.
    Chase supports Apple Pay:
    https://www.chase.com/digital/digital-payments/apple-pay/faqs/how-to-use

     
    Samsung bought that company that came up with the technology that allow phones to be use as swipe cards. You just have to place the phone next to where you would swipe and the cc machine thinks you swipe your card. I hear is not as save as Pay but is cool. Me I'm sticking with Pay 
    watto_cobra
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