Starbucks app ahead of Apple Pay in U.S. mobile payment user adoption
Starbucks may be leading Apple in the U.S. mobile payments market with the coffee chain said to have more users who made a payment using its app than Apple Pay.

While Apple has made strides in turning Apple Pay into one of the dominant mobile payment platforms, leading ahead of both Google Pay and Samsung Pay, research from eMarketer indicates Starbucks continues to have a higher number of active users in the United States.
According to estimates of mobile phone users aged 14 or older who have made at least one in-store mobile payment in the previous six months, approximately 23.4 million people in the U.S. will use the Starbucks app to make an in-store purchase by the end of 2018. By comparison, Apple Pay will be used by 22 million people, while Google Pay and Samsung Pay will have 11.1 million and 9.9 million users respectively.
Starbucks is thought to continue leading over its rivals for a few more years, reaching an estimated 29.8 million U.S. users by 2022. Apple Pay is predicted to follow behind at 27.5 million users, Google Pay will stay in third with 14.9 million users, and Samsung Pay will lag behind with 13.2 million.
The estimates are notable in that the Starbucks app will only work for in-store purchases and pick-up orders at Starbucks stores, not with other retailers, while Apple Pay and its competitors are available for use in a far larger number of outlets. The Starbucks app does also benefit from it being available across both iOS and Android devices, unlike Apple Pay's in-store component being limited to iPhones, Google Pay to Android devices, and Samsung Pay only to Samsung-produced smartphones.
It is claimed by eMarketer that Samsung Pay is in fact the most widely accepted payment system, usable by around 80 percent of merchants, but its restricted availability to Samsung devices simultaneously limits its utility. By contrast, Apple Pay is said to be accepted at more than half of US merchants.
"The Starbucks app is one of the bigger success stories in mobile proximity payments," eMarketer analyst Cindy Liu suggests. Noting the ties to Starbucks' loyalty rewards program, Liu adds "for users of the app, the value of paying with their smartphone is clear and simple - you can save time and money at the register, all while racking up rewards and special offers."
Apple is continuing to cement Apple Pay's position as the main mobile payments platform, expanding the service to include cards from more banks and credit unions over time, both in the United States and abroad. As part of the most recent quarterly financial results, Apple CEO Tim Cook advised Apple Pay has doubled its global active users year-on-year, and tripled the number of transactions.

While Apple has made strides in turning Apple Pay into one of the dominant mobile payment platforms, leading ahead of both Google Pay and Samsung Pay, research from eMarketer indicates Starbucks continues to have a higher number of active users in the United States.
According to estimates of mobile phone users aged 14 or older who have made at least one in-store mobile payment in the previous six months, approximately 23.4 million people in the U.S. will use the Starbucks app to make an in-store purchase by the end of 2018. By comparison, Apple Pay will be used by 22 million people, while Google Pay and Samsung Pay will have 11.1 million and 9.9 million users respectively.
Starbucks is thought to continue leading over its rivals for a few more years, reaching an estimated 29.8 million U.S. users by 2022. Apple Pay is predicted to follow behind at 27.5 million users, Google Pay will stay in third with 14.9 million users, and Samsung Pay will lag behind with 13.2 million.
The estimates are notable in that the Starbucks app will only work for in-store purchases and pick-up orders at Starbucks stores, not with other retailers, while Apple Pay and its competitors are available for use in a far larger number of outlets. The Starbucks app does also benefit from it being available across both iOS and Android devices, unlike Apple Pay's in-store component being limited to iPhones, Google Pay to Android devices, and Samsung Pay only to Samsung-produced smartphones.
It is claimed by eMarketer that Samsung Pay is in fact the most widely accepted payment system, usable by around 80 percent of merchants, but its restricted availability to Samsung devices simultaneously limits its utility. By contrast, Apple Pay is said to be accepted at more than half of US merchants.
"The Starbucks app is one of the bigger success stories in mobile proximity payments," eMarketer analyst Cindy Liu suggests. Noting the ties to Starbucks' loyalty rewards program, Liu adds "for users of the app, the value of paying with their smartphone is clear and simple - you can save time and money at the register, all while racking up rewards and special offers."
Apple is continuing to cement Apple Pay's position as the main mobile payments platform, expanding the service to include cards from more banks and credit unions over time, both in the United States and abroad. As part of the most recent quarterly financial results, Apple CEO Tim Cook advised Apple Pay has doubled its global active users year-on-year, and tripled the number of transactions.
Comments
2) I doubt their growth is sustainable, but *Pay adoption will continue to grow as vendors accept Apple Pay (or vendors realize they've been able to accept Apple Pay ever since the got a chip card reader).
Not a huge starbucks fan, but my yearly spend there is probably ~$20.
I use Apple Pay quite a bit. Even would say that those grocery stores that don't accept it now get much less of my business and I'm anxiously awaiting gas station adoption.
My yearly spend right now is ~ $5,000 and increasing.
Obviously this is statistically irrelevant, however I think it's illustrative that when numbers like those in the article are posted they certainly don't tell the whole story. I count as one registered user for each platform, but not all users are created equal.
Here in Canada, we have broad support for Apple Pay, but I've only used it once in the past year. Maybe pulling out the wallet that's always with me is a hard habit to break?
Now if only we could load our driver's license onto our phones and have that be valid ID, then we're talking! That's pretty much what keeps my wallet with me at all times. Payment cards are secondary.
I'm not fond of this sort of comparative analysis, given that Apple Pay is like a debit card that can be used anywhere with a compatible payment system. Starbucks app? It's a loyalty and rewards system that only works at Starbucks. Quite different. Lastly, I use Apple Pay to add money to my Starbucks app.
That said, Appleinsider has distinguished itself with lucid analysis, and excellent writing. I'm just not sure that this bit of news makes much sense.
I also use an app called stocard (I think that's it) that allows me to put in my library, loyalty, health insurance and other cards in electronically. That plus what I described above keeps my wallet at home most of the time.
The one thing about Apple Pay, in addition to the convenience, is the security. I really, really like having merchants not have access to my credit card number.
Personally, I have only used Apple Pay once in the last 12 month, and that too at the insistence of the checkout guy at Apple Store. I get no extra benefit by using Apple Pay over my credit card, while with Starbucks app I get to skip the wait, earn free drinks, etc.
ApplePay is a slam dunk, amazing service: incredibly easy, secure, and even fun to use (people still get excited/wowed sometimes when they see me use it, and I try to use it every chance I get).
One merchant, selling one type of product, should not be beating ApplePay in use.
Even if ApplePay doesn't make a lot of money, it's such a fantastic add on to the Apple ecosystem that its tragedy that Apple hasn't been promoting it enough or promoting it effectively.
There's failure on the consumer and merchant side. Most people I meet are highly skeptical of the security, and the vast majority of merchants either don't have the capability, or don't have it turned on, or don't even know it's available on their system.
Yet Apple seems content to console themselves with bs, like the report that came out from an apple pay exec that it's available with 50% of merchants. Right..
So frustrating both as an Apple consumer and as an Apple fan.
Edit: In case it's not clear, this isn't about ApplePay vs starbucks (apples and oranges). This is about what this info tells us about ApplePay's rollout, which isn't good.
patchythepirate is exactly right. Maybe if Apple spent less time roping in yet another bank, but rather just bouht, say , a million POS devices for the small biz folks out there. Apple Pay works just about perfect- but the number of places for its use does not seem bigger than a year ago.