Apple Pay used by estimated 127M users globally, but analyst claims only 16 percent of iPh...

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Apple Pay is continuing to grow year-on-year, according to research by Loup Ventures, but while the adoption rate for Apple Pay by its users has reportedly jumped, it is claimed the mobile payments service is still being used by a relatively small proportion of iPhone users.




The year-over-year growth of Apple Pay is "impressive," writes Loup Ventures analyst Gene Munster, noting Apple's own claims of active user numbers more than doubling, and with transactions more than tripling over the same period. The report notes that this growth is taking place despite the firm's own estimate that only 16 percent of global iPhone users have turned on Apple Pay on their mobile devices.

Estimates from Loup Ventures suggest there to have been 127 million global Apple Pay users by the end of 2017, up from the estimated 62 million users at the end of 2016. Based on a claimed 795 million active iPhones worldwide, the 2017 Apple Pay users represent 16 percent of the global iPhone user base.

While seemingly low, the percentage is an improvement from 2016, where an estimated 8 percent of active iPhones used Apple Pay. It is also suggested that around 30 percent of new phones activated in 2017 also enabled Apple Pay on their updated iPhones.

Of that 16 percent of Apple Pay users, it is suggested that U.S. users account for 5 percent of the total, equating to 38 million U.S. users, with between 20 and 30 percent of U.S. iPhone owners said to have enabled Apple Pay. International users make up the remaining 11 percent, which works out to be 89 million people outside the U.S. using Apple Pay.

In Apple's recent shareholders meeting, the company confirmed the rapid growth of Apple Pay over the last 12 months, including fast-paced adoption in Russia and China where computers are passed over in favor of mobile devices. At the time, Apple CEO Tim Cook admitted "Mobile payments have taken off slower than I would have thought."

Munster advises that the report does not cover Apple Pay Cash, due to not having enough data since the person-to-person payment facility launched in December last year.

"We remain optimistic that Apple Pay will gain widespread adoption over the next 3-5 years," suggests Munster, highlighting the integration with iOS makes Apple Pay "the easiest to use digital wallet."

While the user adoption of Apple Pay is one element of the service's growth, Munster also addresses the increased support for the mobile payments platform by businesses and financial institutions. The number of banks around the world supporting Apple Pay has increased by 41 percent in the last year alone, bringing up the total to 2707 banks.

Analysis into the top 100 retailers in the U.S. reveals online Apple Pay support has increased across the board, with 9 percent growth of its usage by app-based retailers, 85 percent growth for mobile sites, and a 56 percent growth in usage for desktop sites compared to the previous year.

In January, Apple Pay VP Jennifer Bailey told the NRF 2018 Retail's Big Show that Apple Pay is accepted in 50 percent of retail outlets in the U.S., up from the 3 percent at the time of its launch. Online, Bailey advised smartphone and tablet transactions make up 25 percent of e-commerce in the U.S., with a growth rate 10 times greater than of traditional brick and mortar stores.

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Comments

  • Reply 1 of 58
    The #1 problem is that although many terminals support NFC payments the staff have no idea and it is not clear whether it does or not. So rather than looking like a boob holding their phone near the terminal and hoping for something to happen, most people use cards. It drives me crazy at my local grocery store seeing all the iPhone owners muck around with inserting a credit card waiting for the remove card beep-beep while I just  wave my phone. It amazes me that the grocery store does nor promote Apple Pay in a big way as it saves so much time at checkout.
    rob53tmaybrian greenwatto_cobrarandominternetpersonpatchythepirateflashfan207RobPalmer9caladanianchia
  • Reply 2 of 58
    eightzeroeightzero Posts: 2,228member
    loopless said:
    The #1 problem is that although many terminals support NFC payments the staff have no idea and it is not clear whether it does or not. So rather than looking like a boob holding their phone near the terminal and hoping for something to happen, most people use cards. It drives me crazy at my local grocery store seeing all the iPhone owners muck around with inserting a credit card waiting for the remove card beep-beep while I just  wave my phone. It amazes me that the grocery store does nor promote Apple Pay in a big way as it saves so much time at checkout.
    It doesn't amaze me at all. Grocery stores are actively promoting "self checkouts" so as to reduce the number of employees as much as possible. Training people costs time and that costs money. There is actually very very little in it for stores. It is a reputation, customer experience thing only. It will catch on over time, as kids like to use their phones for everything.

    I made a big deal out of it at Safeway. Fairly, their twitter account was actively responding, claiming they were sending my reports of non use and errors to the IT department. No idea if they actually did, but they did adopt in October, and while the functionality seems to be improving, it is still a bit unreliable. The checkers, of course, do not care.

    I prefer Apple Pay for the security. 
    brian greenwatto_cobraflashfan207caladanianchialostkiwi
  • Reply 3 of 58
    A continuing annoyance with retailers in the US is their insistence in requiring a signature with the use of ApplePay. Completely unnecessary and undermines the security built into the system. Maddening.
    rob53brian greenwilliamhmacxpresswatto_cobrapatchythepiratecrabbymike1caladanianchia
  • Reply 4 of 58
    rob53rob53 Posts: 1,976member
    A continuing annoyance with retailers in the US is their insistence in requiring a signature with the use of ApplePay. Completely unnecessary and undermines the security built into the system. Maddening.
    How true but their common answer is that's how their system is set up, which means they don't know anything about their POS system. They are instructed on how to properly charge the customer for the items they buy but that's about it. Only when enough people complain point out the fact that many POS card readers accept ApplePay by default and ask why it was turned off (like Home Depot) will merchants start to do anything about it--and it all depends on the merchants. The signature requirement might also go back to the credit card company and their built-in dollar limit before requiring a signature. With the chip card, I don't have to sign if the purchase is under $50 and, usually, it's the same with ApplePay. 

    I've seen those Visa commercials during the Olympics where the card is tapped, no signature, and no verification of card ownership. Have these sequences been shortened or could I "steal" a Visa card and use it without any authentication, at least until the owner calls the card company to have it shut off? If so, I see it as a bad thing, especially when compared to ApplePay.
    randominternetpersoncaladanianSpamSandwichlolliver
  • Reply 5 of 58
    loopless said:
    The #1 problem is that although many terminals support NFC payments the staff have no idea and it is not clear whether it does or not. So rather than looking like a boob holding their phone near the terminal and hoping for something to happen, most people use cards. It drives me crazy at my local grocery store seeing all the iPhone owners muck around with inserting a credit card waiting for the remove card beep-beep while I just  wave my phone. It amazes me that the grocery store does nor promote Apple Pay in a big way as it saves so much time at checkout.
    Apple Pay works at all Aldi locations I have been to. Shop there to get cheaper and better food, instead of walmart.

    watto_cobralolliverlostkiwicornchip
  • Reply 6 of 58
    lkrupplkrupp Posts: 6,618member
    A continuing annoyance with retailers in the US is their insistence in requiring a signature with the use of ApplePay. Completely unnecessary and undermines the security built into the system. Maddening.
    There is little doubt these days that the U.S. has become a technology backwater, a tech third world country. Hell, we’re still not on the metric system. True broadband Internet access is almost non-existent outside a few big cities. Companies like Apple, Space X, and the rest can’t find enough qualified U.S. high-tech workers because our educational system is woefully inadequate. 
    tmayEric_WVGGsmiffy31eightzerowatto_cobracaladanianlolliverlostkiwiGeorgeBMac
  • Reply 7 of 58
    gatorguygatorguy Posts: 19,816member
    loopless said:
    The #1 problem is that although many terminals support NFC payments the staff have no idea and it is not clear whether it does or not. So rather than looking like a boob holding their phone near the terminal and hoping for something to happen, most people use cards. It drives me crazy at my local grocery store seeing all the iPhone owners muck around with inserting a credit card waiting for the remove card beep-beep while I just  wave my phone. It amazes me that the grocery store does nor promote Apple Pay in a big way as it saves so much time at checkout.
    Apple Pay works at all Aldi locations I have been to. Shop there to get cheaper and better food, instead of walmart.

    Well it's SUPPOSED to work. Most of the time I can tap and pay there but keeping those readers in service doesn't seem to be a high priority. 
    watto_cobraGeorgeBMac
  • Reply 8 of 58
    volcanvolcan Posts: 1,763member
    That's a dumb graphic. You can't authenticate the payment without having your finger on the Touch ID.
    randominternetperson
  • Reply 9 of 58
    Cesar Battistini MazieroCesar Battistini Maziero Posts: 148unconfirmed, member
    Guess what!!!?

    16% of all iPhones activated are about 118 million devices!

    So yeah the analysts are right for once!

    And we have to take 3 thing in consideration:
    1) Apple Pay is not available worldwide yet.
    2) Many iPhones that are activated are not compatible with Apple Pay. (A lot of people still use iPhones 5, 5S and even the 4 and 4S in low income countries.)
    3) Many retailers still have no NFC terminals worldwide. 
    watto_cobralolliver
  • Reply 10 of 58
    I had to repeatedly train different McDonald's workers to press the credit button on the big screen, then hold out the keypad, no, not the scanner, the keypad, yes, thank you. And, no, "I'm paying with my Watch" doesn't mean I'm trying to trade it for a chicken salad.

    Most annoying to me are places that still require a physical or digital signature for the smallest of purchases. Sheesh, why not just look up my card number in your booklet, then bust out the card imprinter while you're at it.
    watto_cobraSpamSandwichchialolliverlostkiwiGeorgeBMaccornchip
  • Reply 11 of 58
    Apple Pay was a great convenience for an American visiting the UK.  I don't have a pin for my credit cards so retailers etc. always ask to see ID when I used them.  Apple Pay works just like it ought to and just about everywhere.
    randominternetpersonLukeCagewatto_cobracaladanianlostkiwi
  • Reply 12 of 58
    Just you wait for those McDonald's self-order terminals to show up. My closest McD's has a whole line of them, they're ridiculous.

    https://www.boweryboogie.com/2018/01/inside-spiffed-delancey-street-mcdonalds-back-open-4-months/

    You can even order a cheese.

    http://metro.co.uk/2017/03/15/this-guy-went-to-mcdonalds-and-ended-up-just-ordering-a-slice-of-cheese-6510811/
  • Reply 13 of 58
    sflocalsflocal Posts: 4,401member
    I love ApplePay and use it everywhere it's available.  I got a notice yet again from Bank of America that my credit card was involved in some mass breach and that I have to go through the headaches to update my credit card info on sites that automatically charge my card.  It's a real pain in the backside.  The sooner we can get to a system that doesn't involve my credit card having to be stored somewhere, the better.

    I agree that training is paramount.  Just last week when I found out the hard way that my BofA card was declined, I was buying some pricey shoes and I noticed the register had an ApplePay logo on it.  The clerk had zero idea how to use it and I just ended up using a backup credit card that I use only for emergencies.

    I firmly believe that ApplePay will reach the masses here in the U.S. when it's available at gas stations and ATM's.  Many gas stations now have NFC pads on them, and they do recognize my iPhone, but not able to complete the transaction with it.  It's almost getting there.

    Pretty exciting stuff actually.
    eightzerowatto_cobracornchip
  • Reply 14 of 58
    macxpressmacxpress Posts: 4,730member
    gatorguy said:
    loopless said:
    The #1 problem is that although many terminals support NFC payments the staff have no idea and it is not clear whether it does or not. So rather than looking like a boob holding their phone near the terminal and hoping for something to happen, most people use cards. It drives me crazy at my local grocery store seeing all the iPhone owners muck around with inserting a credit card waiting for the remove card beep-beep while I just  wave my phone. It amazes me that the grocery store does nor promote Apple Pay in a big way as it saves so much time at checkout.
    Apple Pay works at all Aldi locations I have been to. Shop there to get cheaper and better food, instead of walmart.

    Well it's SUPPOSED to work. Most of the time I can tap and pay there but keeping those readers in service doesn't seem to be a high priority. 
    Because you're using an Android phone...so it only works half the time, just like Android. :)
    StrangeDayswatto_cobralolliverlostkiwi
  • Reply 15 of 58
    macxpressmacxpress Posts: 4,730member

    volcan said:
    That's a dumb graphic. You can't authenticate the payment without having your finger on the Touch ID.
    You know, I see so many people actually trying to put their finger on the screen over the TouchID icon when authenticating instead of over the home button. Apple really needs to educate people on what ApplePay is, how to use it, and where to use it. 
    LukeCagewatto_cobralolliverlostkiwiGeorgeBMac
  • Reply 16 of 58
    rob53rob53 Posts: 1,976member
    macxpress said:

    volcan said:
    That's a dumb graphic. You can't authenticate the payment without having your finger on the Touch ID.
    You know, I see so many people actually trying to put their finger on the screen over the TouchID icon when authenticating instead of over the home button. Apple really needs to educate people on what ApplePay is, how to use it, and where to use it. 
    Not only that, the new way ApplePay works is not to show all your cards (you select those ahead of time) but just to show the screen telling you to use TouchID. The image shown means the transaction hasn't been completed to a point where you could even use TouchID.
  • Reply 17 of 58


    Of that 16 percent of Apple Pay users, it is suggested that U.S. users account for 5 percent of the total, equating to 38 million U.S. users, with between 20 and 30 percent of U.S. iPhone owners said to have enabled Apple Pay. International users make up the remaining 11 percent, which works out to be 89 million people outside the U.S. using Apple Pay.


    Can those numbers be right?  If 38 million U.S. users equals 20-30% of U.S. iPhone users, that means there are between 127 million and 190 million iPhone owners in the U.S.
  • Reply 18 of 58
    Eric_WVGG said:
    Just you wait for those McDonald's self-order terminals to show up. My closest McD's has a whole line of them, they're ridiculous.

    https://www.boweryboogie.com/2018/01/inside-spiffed-delancey-street-mcdonalds-back-open-4-months/

    You can even order a cheese.

    http://metro.co.uk/2017/03/15/this-guy-went-to-mcdonalds-and-ended-up-just-ordering-a-slice-of-cheese-6510811/
    I used one of those at McDonalds the other day.  It was awesome.  Much higher likelihood of getting my order right than when talking to a person.  And the Apple Pay part worked flawlessly.
    lostkiwi
  • Reply 19 of 58
    sflocal said:
    I love ApplePay and use it everywhere it's available.  I got a notice yet again from Bank of America that my credit card was involved in some mass breach and that I have to go through the headaches to update my credit card info on sites that automatically charge my card.  It's a real pain in the backside.  The sooner we can get to a system that doesn't involve my credit card having to be stored somewhere, the better.

    I agree that training is paramount.  Just last week when I found out the hard way that my BofA card was declined, I was buying some pricey shoes and I noticed the register had an ApplePay logo on it.  The clerk had zero idea how to use it and I just ended up using a backup credit card that I use only for emergencies.

    I firmly believe that ApplePay will reach the masses here in the U.S. when it's available at gas stations and ATM's.  Many gas stations now have NFC pads on them, and they do recognize my iPhone, but not able to complete the transaction with it.  It's almost getting there.

    Pretty exciting stuff actually.
    Exactly right.  Gas stations are starting to adopt it and it's a perfect use case.  Diddling around my wallet and card, typing in my ZIP code, etc. is much less convenient and fast than using my phone (or even better Apple Watch).  Sheetz just added Apple Pay support and I hear that other big companies have too in recent months.
    lolliverlostkiwi
  • Reply 20 of 58
    A continuing annoyance with retailers in the US is their insistence in requiring a signature with the use of ApplePay. Completely unnecessary and undermines the security built into the system. Maddening.
    That’s not a US regional policy, it’s a merchant issue. Mine don’t. 
    mike1lostkiwiGeorgeBMac
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