Apple Pay accounted for 92% of US mobile wallet debit transactions in 2020, study says

AppleInsider

Apple Pay dominated the mobile wallet space for debit transactions in 2020, a year of significant sector growth thanks to dramatic changes catalyzed by the COVID-19 pandemic.

Apple's payments service accounted for 92% of all mobile wallet debit transactions in the U.S. last year, according to Pulse, an electronic funds transfer firm and subsidiary of Discover Financial Services that serves more than 4,400 financial institutions nationwide.

Pulse's annual 2021 Debit Issuer Study, conducted by Oliver Wyman, shows about two billion mobile wallet debit transactions were conducted in 2020 using either Apple Pay, Samsung Pay or Google Pay. That figure is up 51% year-over-year, with Apple Pay benefitting most to outperform its two major competitors across every metric, the study says.

Compared to Apple Pay's 92% transaction share, Samsung Pay and Google Pay accounted for 5% and 3% of mobile wallet debit transactions, according to Pulse.

Delving deeper into the data, the study found average ticket size increased 55% from $15 in 2019 to $23 in 2020. The bump is in line with an overall increase in debit ticket size, which grew from $40.50 in 2019 to $44.80 last year. Consumers made fewer purchases but those transactions were larger, a change credited to pandemic spending patterns.

Apple Pay's success in 2020 can in part be chalked up to fairly wide retail adoption. Of the top 100 U.S. merchants, 74 accepted the payment option and 65% of all retail locations in the nation supported the service, according to Pulse. Those figures are much improved from the early days of Apple Pay, when only a handful of regional merchants and even fewer standalone retail shops integrated tap-to-pay technology.

Apple Pay's in-app assets are also bearing fruit, with 57% of mobile wallet transactions accomplished in a supporting app. Cardholder enrollment in mobile wallet systems is also on the rise as consumers become more familiar with contactless payments.

Apple Pay launched in the U.S. in 2014 and has since expanded to a number of countries around the world. The platform lets users add a credit or debit card for secure contactless and in-app payments.

Read on AppleInsider

am8449

Incredible! Considering that NFC payments were around long before Apple Pay entered the market

genovelle

This will be of course attributed to Apple having too much power, while it should be attributed to Apple doing the hard work and building support on all sides from the banks to the merchants to the consumers. 

It’s not because they have a monopoly. They don’t even sell the most phones. It’s because they take over markets that their competitors just throw tech at but do not invest heavily into it.  

ArchStanton

genovelle said:

This will be of course attributed to Apple having too much power, while it should be attributed to Apple doing the hard work and building support on all sides from the banks to the merchants to the consumers. 

It’s not because they have a monopoly. They don’t even sell the most phones. It’s because they take over markets that their competitors just throw tech at but do not invest heavily into it.  

Thread winner. 

But but but within Apple Pay, Apple is a monopoly! It’s Anti competitive! 

Envy is an ugly thing, so is politicians trying to gain power off of it. Like a number of other things Apple has done, it was a very good implementation of Wallet and Apple Pay. 

I avoid using physical cards whenever I can. Amex Blue for a couple of specific high rewards categories and Apple (Card)Pay whenever it’s not the special Amex categories (and Apple Pay accepted). I have a wallet uploaded Visa too but carry the physical card, I use it whenever Apple Pay is not accepted or no NFC. That visa provides 2%. Everyone! should listen: you should have no credit charges ever be under 2% cash back.

But Apple Card/Pay is great. 3% on Apple and certain other companies, 2% on anything else using the Apple Pay via NFC, no annual fee, almost no charges of any kind, rewards cash becomes available very quickly, and that accumulated cash reward can be used as you use your NFC Apple Pay. Certainly the quickest cash reward availability and easiest to use. if you’re an iPhone user you’re missing out if you’re not using wallet and signing up for Apple Pay. 

The one bummer is if no NFC Apple Pay, using the physical Apple card is only 1%. Would like to see that upped to 1.75%. That’d be close enough to ditch the visa. Other than that it’s excellent.  

rezwits

Totally agree with the above.  Just want to say tho, it's absolutely disgusting, how a company like Walmart, SAYS "We're going to make contactless payments with or without 'so-and-so' and we'll do the same thing".  This along with other companies, who are:

NOT Flippin' CAPABLE of DOING IT!!!
NOT Flippin' CAPABLE of DOING IT!!!

It's just so stupid how some of these companies don't RESPECT Technological advances, and think they can willy nilly.  (It's like M1 even, bah)

And I would love to hear how many of these are from the Watch, OMG I am like 4 out of 5 on watch so...

It's really a crowning achievement by Apple (like said above with NFC being out even b4), to show:

THIS IS HOW YOU DO IT...

all I wanna do is bash tho so I'll stop LOL

lkrupp

rezwits said:

Totally agree with the above.  Just want to say tho, it's absolutely disgusting, how a company like Walmart, SAYS "We're going to make contactless payments with or without 'so-and-so' and we'll do the same thing".  This along with other companies, who are:

NOT Flippin' CAPABLE of DOING IT!!!
NOT Flippin' CAPABLE of DOING IT!!!

It's just so stupid how some of these companies don't RESPECT Technological advances, and think they can willy nilly.  (It's like M1 even, bah)

And I would love to hear how many of these are from the Watch, OMG I am like 4 out of 5 on watch so...

It's really a crowning achievement by Apple (like said above with NFC being out even b4), to show:

THIS IS HOW YOU DO IT...

all I wanna do is bash tho so I'll stop LOL

Even mom and pop stores are accepting Apple Pay these days. My local donut shop does, my local restaurant does, my local Farmers Market does.

But not Walmart, not Home Depot.

mike1

lkrupp said:

rezwits said:

Totally agree with the above.  Just want to say tho, it's absolutely disgusting, how a company like Walmart, SAYS "We're going to make contactless payments with or without 'so-and-so' and we'll do the same thing".  This along with other companies, who are:

NOT Flippin' CAPABLE of DOING IT!!!
NOT Flippin' CAPABLE of DOING IT!!!

It's just so stupid how some of these companies don't RESPECT Technological advances, and think they can willy nilly.  (It's like M1 even, bah)

And I would love to hear how many of these are from the Watch, OMG I am like 4 out of 5 on watch so...

It's really a crowning achievement by Apple (like said above with NFC being out even b4), to show:

THIS IS HOW YOU DO IT...

all I wanna do is bash tho so I'll stop LOL

Even mom and pop stores are accepting Apple Pay these days. My local donut shop does, my local restaurant does, my local Farmers Market does.

But not Walmart, not Home Depot.

Yep. All the payment processors who support the smaller businesses seem to support Apple Pay and other contact less payments. It's clearly an intentional decision on the part of the large chains not to accept.

GeorgeBMac

AppleInsider said:

....

Of the top 100 U.S. merchants, 74 accepted the payment option and 65% of all retail locations in the nation supported the service, according to Pulse. Those figures are much improved from the early days of Apple Pay, when only a handful of regional merchants and even fewer standalone retail shops integrated tap-to-pay technology.

Apple Pay's in-app assets are also bearing fruit, with 57% of mobile wallet transactions accomplished in a supporting app. Cardholder enrollment in mobile wallet systems is also on the rise as consumers become more familiar with contactless payments.
...
Read on AppleInsider

I find this surprisingly low.   Around the Pittsburgh region I find it unusual when a merchant does not accept Apple Pay.  Really the only ones who don't are restaurants where they take your card into the back room and one 1950's ice cream shop that only accepts cash.   Even the vendors at the Farmer's Markets all accept it.

As for vendors:   maybe i'm just not seeing them because I stopped shopping at those who didn't accept Apple Pay years ago.

GeorgeBMac

rezwits said:

Totally agree with the above.  Just want to say tho, it's absolutely disgusting, how a company like Walmart, SAYS "We're going to make contactless payments with or without 'so-and-so' and we'll do the same thing".  This along with other companies, who are:

NOT Flippin' CAPABLE of DOING IT!!!
NOT Flippin' CAPABLE of DOING IT!!!

It's just so stupid how some of these companies don't RESPECT Technological advances, and think they can willy nilly.  (It's like M1 even, bah)

And I would love to hear how many of these are from the Watch, OMG I am like 4 out of 5 on watch so...

It's really a crowning achievement by Apple (like said above with NFC being out even b4), to show:

THIS IS HOW YOU DO IT...

all I wanna do is bash tho so I'll stop LOL

A BIG factor in that was the big hitters like CVS & Walmart were fine with contactless payments -- but they also wanted to collect extraneous data of the user -- which Apple Pay blocked, it doesn't even give them the credit card number.

larryjw

I guess if you cherry-pick enough numbers you can get whatever statistics you want. 

Mobile Debit transactions. 

Ok. Useful to know, a little. But, what about the whole of NFC transactions: Debit, Credit, Apple Cash (what kind of transaction is that?), Device (iOS, Android, other), Apple Watch, etc. 

Now, those categorizations might be useful benchmarks.

MplsP

in the last few years I’ve seen a significant increase in merchants who accept Apple Pay around the Minneapolis area. Even my local mechanic accepts Apple Pay now. Home Depot, Lowes, Target and Walmart are the major holdouts. I think some of the switch was driven by COVID and the desire for contactless payment but part of it was likely related to people switching over payment terminals.

It’s curious that Samsung/Google have such a small share - has anyone seen any analysis to the reason why? 

sconosciuto

I moved from the US to Europe this year.

I discovered very quickly that EVERYONE here does contactless. Not once have I seen anybody swipe a card.

In the US, I used my Apple Card sparingly. A lot of that had to do with the poor diffusion of contactless payments. Too often whatever card I was trying to use simply didn't work with a supposedly contactless terminal, so I almost always paid by swiping a card and I never carried my physical Apple Card on me. Apple Pay was also hit-and-miss; it did not take long for me to quit bothering to ask the cashier if they took it, chances were the answer was no. Just a waste of my time, when I check out I want to just pay and go.

Here in Europe, I quickly got accustomed to contactless but I was using my bank card for it. It did not take long for me to start using my iPhone and it is so easy, much easier than pulling out the wallet and fumbling with the card.

2% daily cash back on all purchases plus no foreign transaction fees and ease of use, it is a total no-brainer to use Apple Card via Wallet. The only consideration that might make me not use my Apple Card for whatever transaction is if the exchange rate were to go up significantly (I pay my Apple Card with USD), then I would want to spend the euros bought more cheaply in my local bank first.

I think that once the US catches up with contactless payment ubiquity, Apple Card transactions will really take off.

barthrh

Even mom and pop stores are accepting Apple Pay these days. My local donut shop does, my local restaurant does, my local Farmers Market does.

But not Walmart, not Home Depot.

Up until COVID Home Depot (in Canada) didn't accept it (or any contactless payment). Since then, they do. They hate it because it hides your CC number which they use to track purchasing.