Apple Pay exceeding expectations with 400 percent user growth in 2016
During Apple's quarterly financial results call for the third fiscal quarter of 2016, CEO Tim Cook shed more light on Apple Pay's adoption and growth with purchasers and retailers.
Cook noted that Apple Pay's monthly users are up over 400 percent year over year. Out of the nine markets in which Apple Pay is live, more than half of the service's transaction volume is coming from outside the U.S.
Additionally, Cook noted that three million retailers now accept Apple Pay in the U.S. Worldwide, there are more than 11 million points of sale across all participating Apple Pay countries. Retailers are telling Apple that three out of four contactless payments in the U.S. are being made with Apple Pay, instead of competing services Android Pay or Samsung Pay.
Answering a question from Gene Munster, Cook specified Apple Pay revenues as less about profits, and more about a "great feature for our customers" with iPhones. Cook said that while growth is astronomical, the base is relatively very small, as compared to the overall Apple user base.
Apple has yet to break out concrete numbers of regular users of the service. Analysts believe that U.S. Apple Pay transactions accounted for most of an estimated $10.9 billion in transactions in 2015. Only four countries had official Apple Pay support in 2015.
After an October 2014 U.S. launch, the Apple Pay service expanded to the U.K., Canada, and Australia. In 2016, Apple Pay launched in China, Singapore, Switzerland, France, and Hong Kong.
Revenue from Apple Pay contributes to the "services" category of the company's financial report. Services came in at $6 billion, up 20 percent from the year-ago quarter. Services count for about 11 percent of Apple's overall revenue, with Cook claiming that if it was separately accounted for, would qualify for a Fortune 100 company at some point in 2017.
Cook noted that Apple Pay's monthly users are up over 400 percent year over year. Out of the nine markets in which Apple Pay is live, more than half of the service's transaction volume is coming from outside the U.S.
Additionally, Cook noted that three million retailers now accept Apple Pay in the U.S. Worldwide, there are more than 11 million points of sale across all participating Apple Pay countries. Retailers are telling Apple that three out of four contactless payments in the U.S. are being made with Apple Pay, instead of competing services Android Pay or Samsung Pay.
Answering a question from Gene Munster, Cook specified Apple Pay revenues as less about profits, and more about a "great feature for our customers" with iPhones. Cook said that while growth is astronomical, the base is relatively very small, as compared to the overall Apple user base.
Apple has yet to break out concrete numbers of regular users of the service. Analysts believe that U.S. Apple Pay transactions accounted for most of an estimated $10.9 billion in transactions in 2015. Only four countries had official Apple Pay support in 2015.
After an October 2014 U.S. launch, the Apple Pay service expanded to the U.K., Canada, and Australia. In 2016, Apple Pay launched in China, Singapore, Switzerland, France, and Hong Kong.
Revenue from Apple Pay contributes to the "services" category of the company's financial report. Services came in at $6 billion, up 20 percent from the year-ago quarter. Services count for about 11 percent of Apple's overall revenue, with Cook claiming that if it was separately accounted for, would qualify for a Fortune 100 company at some point in 2017.
Comments
Also, I've never used a pin while using my chip card, just signing above a certain amount. I think a pin is much better though.
I've also encountered completion sounds with chip card readers that sound like a system error (CVS finally updated their readers to a more pleasant "ding" sound), and other places that use to not have you sign for small amounts with the card swipe now have you sign for any amount with the chip card. Since this does slow down the transaction, which can affect sales and customer satisfaction I've suggested their call their hosting company to see if they can get an update pushed that will forego the signing under a certain threshold. So far, nothing seems to have changed on that front, for the places I frequent.
The US is just getting chip & pin, and NFC. By contrast other countries have been using Chip & Pin for 20+ years and iNFC for 10+ years . In Austealia you haven't been able to sign for several years now (5 ?) . The infrastructure present in these countries is almost universal, and in those where Apple Pay has launched, you can do 80-90 percent of your transactions with Apple Pay.
its very fast and convenient, and has none of the problems you describe.
At times the US is a backwater, blocked up by special interest groups and cheap labor - this is one of those times.
Peversely this his makes Apple Pay a harder sell to banks in these countries as it's merely incremental, and not revolutionary.
I always try to evangelize it and explain simply how safe it is and that not only is your card number not in the phone, it is not shared with the vendor. Nor is any of your buying habit data shared. Also cool. Sometimes all I get is the "trout look" from people, but I'm used to that. I was once described as the guy who, when asked for the time, tells you how to build a watch. I often see eyes glaze over.
Worked in New Zealand also, to the apparent surprise of some of the merchants there.
Kinda confused about that.
That sound was to get your attention so you remember to remove your card. But, I agree that it was a poor choice.
I'm still surprised at the number of people that haven't ever seen someone pay with an Apple Watch. I've had mine since launch - and it still gets comments when I use it (just did yesterday at Petco).
I have one particular shopping string I do where I can pay with the Watch at every store: Walgreens->Starbucks->Petco->Wilson's Farm (local farm). One of these days I'm going to attempt to leave my wallet at home and try it :-)
= "three out of four contactless payments in the U.S. are being made with Apple Pay"
My employer's cafeteria now accepts it, which means I'll be able to use Apple Pay every day. As more of these "every day" retail locations accept Apple Pay, the transaction volumes will rise quickly.
Gas stations accepting Apple Pay will drive a big increase. I already use Apple Pay at Exxon stations. it requires their app -- which I know many of you object to -- but it's actually quite convenient and does support Apple Pay.