Walmart Pay uses bizarre metric to claim its dominance over Apple Pay is approaching

Posted:
in iPhone edited November 2017
A recently published study claims that WalMart Pay is getting ready to surpass Apple Pay -- but fails to acknowledge the more limited reach that the QR code-based service has versus Apple's.




An account published by Bloomberg on Tuesday, citing a digital payment service study, claims that WalMart Pay is "close to surpassing" Apple Pay in usage for mobile payments in the U.S. However, the reasoning is flawed, based on the extremely limited metric that both the publication and study generators Crone Consulting have picked to assess the difference.

According to a metric correlating percent of total transactions in stores that accept the payment method, WalMart Pay was sitting at 5.1 percent in June, versus Apple's 5.5 percent -- with both growing. WalMart believes that this metric will grant them the crown of digital payments champion.

"If daily enrollments don't slow down, I think that's pretty well in the cards shortly," said WalMart's Senior Vice President for Services and Digital Acceleration Daniel Eckert. "I would have to imagine we are getting pretty close."

However, the calculated metric means very little. WalMart Pay is accepted in all of the company's 4672 stores. Apple Pay is accepted at millions of locations, spanning dozens of major retail chains like Apple itself, Best Buy, JCPenney, Macy's, Office Depot, Staples, and Urban Outfitters -- as well as several fast food chains including McDonalds with over 14,000 restaurants, Chick-fil-a with over 2200 U.S. locations, and over 8000 Starbucks Coffee stores.

The data for the Bloomberg story, and WalMart's claim of dominance was collected from a Pymnts survey. Ignored by both are other metrics about digital payments from the survey, claiming that 24.5 percent of those questioned claimed to have tried Apple Pay, with only 5.08 percent having used WalMart Pay.




The difference in survey methodology is noted in the small print at the bottom of the Pymnts survey that WalMart is using to declare impending victory, and aggravated by assorted bar graphs in the study that are the same size, but use different scales.

According to the survey data, an "eligible transaction" for Apple Pay means people with an iPhone that shopped at a store that accepts Apple Pay. For WalMart Pay, eligible transactions are only drawn from people that shopped at WalMart.

WalMart Pay's technology is roughly based on the failed CurrentC universal digital payment system. There are apps for WalMart Pay on Android and iOS, and the customer must run the app and generate a QR code for the cashier to scan.

AppleInsider has used both WalMart Pay and Apple Pay. While Apple Pay is not accepted at WalMart, trials have shown the process involving the WalMart Pay process to be a bit longer upon conclusion of scanning the purchased goods versus one with a similar volume at a Wegmans supermarket.
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Comments

  • Reply 1 of 54
    Rayz2016Rayz2016 Posts: 3,797member
    So Walmart is winning … as long as you ignore everything else other than Walmart?
    SoliSendMcjakbanchomagman1979chiajbdragonStrangeDayslostkiwiwatto_cobracornchip
  • Reply 2 of 54
    macxpressmacxpress Posts: 4,447member
    Sounds to me like they're just trying to make a case as to why they don't need ApplePay. Personally, I refuse to use Walmart Pay. I'm not going to support a company that just doesn't want to use something others do which could potentially start Target Pay, JCPenny Pay, Sears Pay, etc, etc.
    calijbdragonStrangeDaysanton zuykovlolliverwatto_cobracornchip
  • Reply 3 of 54
    I myself have used both Apple Pay and WalMart Pay. Apple Pay is quicker; WalMart Pay is convenient sometimes, but I recently noticed something new: previously, when using WMP, it would generate a digital receipt within the app. On my last two visits to WalMart, it not only generated the digital receipts but also printed out paper ones. That itself is one reason I prefer Apple Pay so as to not use paper. :(
    Solimagman1979lollivercornchip
  • Reply 4 of 54
    maestro64maestro64 Posts: 4,147member

    The take away is that Walmart was only able to convince 5% of their customer to use something other than Cash or Credit Cards. Boy they are big winner. Let not forget the idea of Walmart pay, they do not want to pay credit card transaction fee they trying to add another 2 to 3% to the bottom line plus not wait 30 days to get their cash for a purchase.

    It does not mater, most people who shop Walmart are not the typical Apple customer. If you did an venn Diagram of the typical Walmart customer and Apple customer the shaded area would be very small.

    edited November 2017 radarthekatmagman1979watto_cobracornchip
  • Reply 5 of 54
    BebeBebe Posts: 64member
    The way I see it is that Walmart is just trying be relevant in the mobile pay industry.
    watto_cobra
  • Reply 6 of 54
    Are they actually trying to justify the purchase of CurrentC or trying to convince other retailers to adopt their system?
    edited November 2017 jbdragonwatto_cobracornchip
  • Reply 7 of 54
    Apple just needs to adopt MST
    edited November 2017
  • Reply 8 of 54
    jkichlinejkichline Posts: 1,290member
    I don't shop at Walmart.
    SendMcjakben20watto_cobracornchip
  • Reply 9 of 54
    SoliSoli Posts: 7,677member
    Taking bets on when Walmart (and Home Depot and CVS) will finally start accepting standard mobile OS/vendor *Pay services.
    lolliverwatto_cobracornchip
  • Reply 10 of 54
    slurpyslurpy Posts: 5,008member
    This doesn't stop Macrumors from running with the shitty headline: "Walmart Pay Close to Surpassing Apple Pay in U.S. Mobile Payments Usage". Par the course for that garbage click whore site.
    ben20calimagman1979StrangeDaysanton zuykovlolliverwatto_cobracornchipjony0
  • Reply 11 of 54
    SendMcjakSendMcjak Posts: 66unconfirmed, member
    I've used Apple Pay twice today.  I've never used Walmart Pay.
    Solislprescottmagman1979jbdragonanton zuykovlolliverwatto_cobracornchipbrucemc
  • Reply 12 of 54
    macxpress said:
    Sounds to me like they're just trying to make a case as to why they don't need ApplePay. Personally, I refuse to use Walmart Pay. I'm not going to support a company that just doesn't want to use something others do which could potentially start Target Pay, JCPenny Pay, Sears Pay, etc, etc.
    A lot of stores have their own credit cards, so they will probably have their own version of digital payment soon.
  • Reply 13 of 54
    Thanks as always for cutting through the clutter.  That makes sense to me now.
    lolliverwatto_cobra
  • Reply 14 of 54
    slurpyslurpy Posts: 5,008member
    When I go out, 8/10 times I don't bother to take my wallet anymore. 90% of the places I buy and shop from support Apple Pay, from fast food, to restaurants, to retail outlets, and I even have most of my loyalty cards in the wallet app. I use Apple Pay multiple times per day, every day. Walmart Pay? Barely heard about it and never used it. 

    Then again, I'm in Canada and for some reason the US is shockingly backwards in this regard. I was stunned when I was forced to swipe my card (no chip and pin) first time I used a gas station there after crossing the border. Didn't even remember how to do it. 
    edited November 2017 magman1979colinnglostkiwilolliverwatto_cobracornchipbrucemc
  • Reply 15 of 54
    GG1GG1 Posts: 177member
    I thought CurrentC used a direct connection to your bank account (to avoid credit card fees).

    Is WalmartPay the same way?

    I just checked here. Yes, Walmart know about you and your bank account. Seems like WalmartPay is just CurrentC warmed over.

    Thankfully, Apple take financial security and privacy seriously.
    entropysStrangeDayslolliverwatto_cobracornchip
  • Reply 16 of 54
    macxpressmacxpress Posts: 4,447member
    macxpress said:
    Sounds to me like they're just trying to make a case as to why they don't need ApplePay. Personally, I refuse to use Walmart Pay. I'm not going to support a company that just doesn't want to use something others do which could potentially start Target Pay, JCPenny Pay, Sears Pay, etc, etc.
    A lot of stores have their own credit cards, so they will probably have their own version of digital payment soon.
    I kinda doubt that...having a store credit card is a lot different than starting your own digital payment system. 
    edited November 2017 d_2lollivercornchip
  • Reply 17 of 54
    maestro64maestro64 Posts: 4,147member
    Are they actually trying to justify the purchase of CurrentC or trying to convince other retailers to adopt their system?

    i think it is the second item, they trying to say their system is just as good as what Apple is doing, if Walmart is seeing 5% uptake,  other stores could see the same if not better than Apple pay so they can move to what Walmart is doing and cut out the CC companies and get their money directly from consumer bank accounts.
    cornchip
  • Reply 18 of 54
    macxpressmacxpress Posts: 4,447member

    jkichline said:
    I don't shop at Walmart.
    Thats nice, but millions of people do everyday.
    entropyscornchip
  • Reply 19 of 54
    xmhillxxmhillx Posts: 105member
    “There are apps for WalMart Pay on Android and iOS, and the customer must run the app and generate a QR code for the cashier to scan.

    AppleInsider has used both WalMart Pay and Apple Pay.”

    Wut. I’ve used both extensively. For Walmart Pay, the customer doesn’t have to generate a QR code for the cashier to then scan... what is Apple Insider using? The Walmart app I have lets you 3D Touch the app, swipe and let go on ‘Walmart Pay’, it asks for passcode or Touch ID or Face ID (presumably but I haven’t tried it since getting my iPhone X Nov 3rd), the camera comes up and you scan a QR code on the checkout screen you’re at, and that’s it. I put my phone away in my pocket. The checkout computer links to your walmart account and charges your credit card once you hit “I’m done” on the computer screen. There’s no paper receipt. I usually go to the self checkout so there’s no cashier to scan anything on my phone screen anyways. I get an electronic receipt and I submit the items I bought for an automatic price match feature that gives you credit when there’s lower prices somewhere else for the same item. It’s pretty sick. Apple Pay is way quicker for payment but Walmart Pay has electronic receipts stored in the app indefinitely and that’s quite convenient. And price match feature is kool though I only get like $10 back every 6 months, but hey it’s better than $0.

    I just don’t get Apple Insider’s comment on a cashier needing to scan a QR code generated on your phone. What’s that about?
    edited November 2017 cornchip
  • Reply 20 of 54
    Mike WuertheleMike Wuerthele Posts: 2,887administrator
    xmhillx said:
    “There are apps for WalMart Pay on Android and iOS, and the customer must run the app and generate a QR code for the cashier to scan.

    AppleInsider has used both WalMart Pay and Apple Pay.”

    Wut. I’ve used both extensively. For Walmart Pay, the customer doesn’t have to generate a QR code for the cashier to then scan... what is Apple Insider using? The Walmart app I have lets you 3D Touch the app, swipe and let go on ‘Walmart Pay’, it asks for passcode or Touch ID or Face ID (presumably but I haven’t tried it since getting my iPhone X Nov 3rd), the camera comes up and you scan a QR code on the checkout screen you’re at, and that’s it. The checkout computer links to your walmart account and charges your credit card once you hit “I’m done” on the computer screen. There no paper receipt. I usually go to the self checkout so there’s no cashier to scan anything on my phone screen anyways. I get an electronic receipt and I submit the items I bought for an automatic price match feature that gives you credit when there’s lower prices somewhere else for the same item. It’s pretty sick. Apple Pay is way quicker for payment but Walmart Pay has electronic receipts stored in the app indefinitely and that’s quite convenient. And price match feature is kool though I only get like $10 back every 6 months, but hey it’s better than $0.

    I just don’t get Apple Insider’s comment on a cashier needing to scan a QR code generated on your phone. What’s that about?
    It launched with the QR code scan, and that's when we tried it. Some WalMarts still need it, apparently.

    That said, I'll re-try it this weekend, see if it's gotten any faster.
    edited November 2017 watto_cobracornchip
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