Analysts see 'strong growth' of Apple Pay annually, more room to grow
Apple Pay's usage is continuing its steadily rise in popularity, according to a report on credit and debit card transactions, with use of the Apple payment platform growing by approximately 50 percent in transaction volume within 12 months.
The data from consumer spending analytics firm TXN claims Apple Pay transactions grew by 50 percent for the month of December 2016, compared to the same month in 2015. A graph reveals usage gradually increased at the start of the year by over 30 percent in May, followed by a small drop before growth restarted for the rest of the period.
The claimed 50 percent increase in the analysis differs from information revealed by Apple itself. During the Q4 conference call last October, CEO Tim Cook mentioned Apple Pay transaction volumes were up almost 500 percent year-over-year, and the month of September was busier than what was observed throughout all of fiscal 2015.
The difference in figures likely stems from TXN's usage of a "panel of transactions from over 3 million payment cards," but it is only able to distinguish payments made with Apple Pay from others "for some of the card issuing banks."
Also revealed in the report were merchants that had the highest proportion of Apple Pay-derived transactions out of the total volume of credit card payments. The highest positions were dominated by app-based services, with HotelTonight topping the list with just under 3.5 percent of transactions stemming from Apple Pay, followed by Caviar and Postmates.
According to the data, Apple Pay makes up between 1 percent and 1.5 percent of credit card transactions for the Apple Store.
For Apple Pay at brick-and-mortar businesses, Duane Reade and Whole Foods outpace the rest, with 1.8 percent and 1.7 percent of transactions respectively. Aside from Canteen Vending, which achieved just under 1 percent, the other physical store businesses all measured at below 0.8 percent Apple Pay usage for transactions.
Among popular retail websites, Boxed.com has a 2 percent adoption rate, with Raise.com close behind and exceeding 1.5 percent.
"Apple Pay had strong growth in 2016, but still accounts for a fairly small percent of all credit card transactions, leaving lots of room for further growth," TXN summarizes. "The businesses with fastest Apple Pay adoption are unsurprisingly apps and websites popular on Apple mobile devices."
The data from consumer spending analytics firm TXN claims Apple Pay transactions grew by 50 percent for the month of December 2016, compared to the same month in 2015. A graph reveals usage gradually increased at the start of the year by over 30 percent in May, followed by a small drop before growth restarted for the rest of the period.
The claimed 50 percent increase in the analysis differs from information revealed by Apple itself. During the Q4 conference call last October, CEO Tim Cook mentioned Apple Pay transaction volumes were up almost 500 percent year-over-year, and the month of September was busier than what was observed throughout all of fiscal 2015.
The difference in figures likely stems from TXN's usage of a "panel of transactions from over 3 million payment cards," but it is only able to distinguish payments made with Apple Pay from others "for some of the card issuing banks."
Also revealed in the report were merchants that had the highest proportion of Apple Pay-derived transactions out of the total volume of credit card payments. The highest positions were dominated by app-based services, with HotelTonight topping the list with just under 3.5 percent of transactions stemming from Apple Pay, followed by Caviar and Postmates.
According to the data, Apple Pay makes up between 1 percent and 1.5 percent of credit card transactions for the Apple Store.
For Apple Pay at brick-and-mortar businesses, Duane Reade and Whole Foods outpace the rest, with 1.8 percent and 1.7 percent of transactions respectively. Aside from Canteen Vending, which achieved just under 1 percent, the other physical store businesses all measured at below 0.8 percent Apple Pay usage for transactions.
Among popular retail websites, Boxed.com has a 2 percent adoption rate, with Raise.com close behind and exceeding 1.5 percent.
"Apple Pay had strong growth in 2016, but still accounts for a fairly small percent of all credit card transactions, leaving lots of room for further growth," TXN summarizes. "The businesses with fastest Apple Pay adoption are unsurprisingly apps and websites popular on Apple mobile devices."
Comments
People don't realize nothing like this just takes off. When you do a major change like this it takes quite a while to get everyone on board (Retailers, Banks, and Customers). It doesn't matter who is CEO of Apple or who is running it. This is a huge undertaking for everyone involved. This will succeed in time...patience people! Patience!
"You take ApplePay yet?"
"<shrug> don't know."
"Can you tell your boss a customer would like it?"
"<shrug> <rolls eyes> would you like help out sir?<deeps sigh, looks at line forming>"
It's tough for Apple to negotiate deals with each and every retailer and/or bank and/or credit card company just for points or rewards. They all have their own systems so Apple might get caught up in too many details to roll out something big. But they could easily offer Apple Store or App Store rewards points. I already use Apple Pay in all of my major shopping excursions but I would go out of my way to use it if they offered points to discount Apple Store hardware or software.
I like ApplePay - and I use it as often as possible where it affords convenience and (more) security - but in the US its just not as good as it could be - take your above comments - these are not isolated examples, but I will offer some recent experiences..
- at my regular McDonalds drive thro (I like their apple pie) - suddenly no Apple Pay is available at drive thro' spoke to their manager who told me it works fine - but you need server "to take your phone to SCAN it indoors - " I'm like so how does the finger print bit work then - she didn't know but suggested I use cash in the drive thro
- at a grocery store (Harris Teeter)- all 4 of self checkout are "Apple Pay enabled" they have a sign - bit only one works - the other 3 will "NOT approve"
- At food lion - even though I am trying to use my saved debit card you have to select credit card to or it won't approve ( I don't have this issue anywhere else)
- AT BJ's wholesale - worked for weeks, then one nigh card not approved - despite trying with 3 saved cards. - had to resort to using physical card
- At HomeDepot - AP did work in the early days - then they stopped it - then it worked for months - now its disabled again
Even the way you use it - especially if you have a loyalty card is annoyingly different (best is Walgreens) varies too much - sign/dontsign pin / no pinWawa have awful system (worse than Starbucks) to use AP inside, BUT some of their gas pumps conveniently AP enabled ( slick too)
Lastly its just not enabled still at too many places in USA, or worse, its deliberately disabled. I wonder if Target will be the next to disable it
The only restrictions that I know of are: $100 (Can) limit for debit card transactions and $200 for credit card. But this is not a mobile payments restriction per se. It's the limit the Canadian banks have set for contactless payments, whether through an iPhone or an actual card.
In fact I also tried Apple Pay last summer while vacationing in Greece. I noticed that some card machines had the contactless symbol and passed my phone over it. Worked without a hitch. To my knowledge none of the Greek banks have supported Apple Pay yet.
That's kind of expected -- the AP transactions use various card tokens and none of them need to be your iTunes credit card.
I like ApplePay - and I use it as often as possible where it affords convenience and (more) security - but in the US its just not as good as it could be - take your above comments - these are not isolated examples, but I will offer some recent experiences..
- at my regular McDonalds drive thro (I like their apple pie) - suddenly no Apple Pay is available at drive thro' spoke to their manager who told me it works fine - but you need server "to take your phone to SCAN it indoors - " I'm like so how does the finger print bit work then - she didn't know but suggested I use cash in the drive thro
- at a grocery store (Harris Teeter)- all 4 of self checkout are "Apple Pay enabled" they have a sign - bit only one works - the other 3 will "NOT approve"
- At food lion - even though I am trying to use my saved debit card you have to select credit card to or it won't approve ( I don't have this issue anywhere else)
- AT BJ's wholesale - worked for weeks, then one nigh card not approved - despite trying with 3 saved cards. - had to resort to using physical card
- At HomeDepot - AP did work in the early days - then they stopped it - then it worked for months - now its disabled again
Even the way you use it - especially if you have a loyalty card is annoyingly different (best is Walgreens) varies too much - sign/dontsign pin / no pinWawa have awful system (worse than Starbucks) to use AP inside, BUT some of their gas pumps conveniently AP enabled ( slick too)
Lastly its just not enabled still at too many places in USA, or worse, its deliberately disabled. I wonder if Target will be the next to disable it
Target has NEVER accepted Apple Pay in Store. Target was one of the first to Accept Apple pay ONLINE and as far as I know they still do. Never in the store unless they have gotten new terminals recently. I haven't been to Target in a while. McDonalds, Ya, not sure how exactly that works in a drive through or any other drive through at this time. I know a few years back Jack In the Box had Terminals mounted outside the window to allow card swiping and I think NFC transactions, but like many other places, before Apple Pay, few people were using those keyfob things or Google Wallet. So many business were yanking them. Then Apple Pay came along and started turning that back around, and Samesung Pay and Android Pay. Some places now have all of these listed on the large screen terminals. Home Depot did work, then they disabled them, but they did say in the past that Apple Pay support was coming. Why it's taking so long? http://appleinsider.com/articles/15/05/05/home-depot-to-become-largest-retailer-to-support-apple-pay Raley's Supermarket's where I live, and there's 2 in my town accept Apple Pay and the others now. I've had no problem at them. Either Self check out or a normal check out. It's worked just fine at Food Max even though they didn't know they Supported Apple Pay the few times I've been there. Subway has been just fine. Pizza Hut and Mountain Mikes Pizza has worked. The places I get gas at, none support Apple Pay, but also Gas Stations don't have to upgrade their Pump Terminals until 2020. Because it's a lot more costly. So I expect that to change in time. I'm not going to go load a App and pay that way for each place I go to. No thanks!!!!