Apple Pay accepted at 1 out of 2 U.S. stores, says Apple VP Jennifer Bailey

Posted:
in General Discussion edited January 2018
Speaking at NRF 2018 Retail's Big Show in New York earlier this month, Apple Pay VP Jennifer Bailey presented a speech detailing how iPhone changed the retail landscape, and outlined the tech company's ongoing efforts in the mobile payment marketplace.


Apple Pay VP Jennifer Bailey. | Source: CNET


Addressing conference attendees in a speech entitled "The Modern Shopping Experience," Bailey presented a few interesting tidbits relating to Apple Pay growth and adoption, as well as insight into Apple's current and future ambitions for mobile payments services, reports CNET Japan.

Led by iPhone, mobile is doing more to revolutionize e-commerce than any other platform, Bailey said. Purchases made on smartphones and tablets account for 25 percent of e-commerce transactions in the U.S. The rate of growth for mobile transactions is four times that of desktop, and 10 times that of traditional brick and mortar retail.

The same phenomenon is occurring outside the U.S. China, for example, sees 80 percent of its e-commerce transactions performed on mobile devices.

Apple Pay is behind a large chunk of those purchases. According to Bailey, Apple Pay availability was limited to about 3 percent of stores in the U.S. when it launched in 2014, but is now accepted in 50 percent of stores.

"It's the world's most accepted contactless payment technology," Bailey said.

Beyond reasonably wide acceptance, the platform plays an integral role in the mobile e-commerce boom. The company provides retailer support in four distinct areas: apps, transaction settlement, loyalty programs and integration between store and mobile.

On the topic of apps, Bailey noted iOS presents retailers an innovative platform on which they can sell their wares. With iOS 11, sellers can provide customers with unique experiences that harness device hardware like location services, biometrics and, with iPhone X, TrueDepth camera technology.

Warby Parker's latest app, for example, utilizes TrueDepth to recommend eyewear based on facial maps generated from a user's face.

Other companies like home decoration firm Wayfair tap into ARKit to offer customers immersive shopping experiences. The Wayfair app allows users to "try out" furniture by placing virtual representations of desired pieces in their home.

Both Warby Parker and Wayfair accept Apple Pay, meaning innovative sales features are seamlessly merged with fast and secure checkout. That speed and safety sets Apple Pay apart from physical credit card with chip solutions, defining Apple's contribution to EC settlements.

As for loyalty programs, Bailey highlighted offerings from Kohl's and Walgreens, both of which integrate with the Wallet app and in-store point-of-sale terminals.

Finally, Bailey touched on Apple's in-house initiatives rolled out through the company's retail locations. Staff members use a Concierge app to manage appointments, while Leader Board acts as an in-depth tool for tracking store performance, POS transactions, Genius Bar assets, repair orders and more.

The Apple Store app blurs the line between online and physical shopping. Using the app, customers can purchase an item and receive a push notification when it's ready for pickup. Once at an Apple Store, location services determine a device is in the vicinity to trigger another notification with a redemption QR code. Integration with Apple Wallet makes for a seamless checkout experience.

"You can discover and purchase services and products in new ways, from pickups to recommended personalized products. We will continue to develop [this technology] in the future," Bailey said, according to CNET.
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Comments

  • Reply 1 of 52
    Rayz2016Rayz2016 Posts: 4,561member
    Someone dropping by to declare ApplePay a failure because their local crack dealer doesn’t have an NFC reader in 3… 2… 1…

    fastasleepchiabeowulfschmidtRodoBobJontmayjbdragonAirunJaemavemufclolliverwatto_cobra
  • Reply 2 of 52
    SoliSoli Posts: 8,748member
    I've been a huge advocate for ApplePay and saying that a lot more stores support the service (later on, along with AndroidPay and SamsungPay) than people realize, which includes the retailers themselves*, but I honestly can't say I'm seeing it at 50% of the stores I go to.


    * I've been ordering these free decals for 2(?) years now to give to retailers that support ApplePay but don't know it or advertise it as a way of spreading the word and helping me achieve my goal of no longer having to carry a wallet with any physical cards: https://www.applepaysupplies.com/applepaykit.html
    kitatitfastasleepzroger73WTimbermanroundaboutnowksecAirunJaelolliverjony0tokyojimu
  • Reply 3 of 52
    JFC_PAJFC_PA Posts: 301member
    Rayz2016 said:
    Someone dropping by to declare ApplePay a failure because their local crack dealer doesn’t have an NFC reader in 3… 2… 1…

    Please, smartphones have recently been attributed as one significant driver behind declining urban violence as the drug trade shifts online from street corners. With street corners no longer being fought over there’s fewer murders. 

    And theres that new Apple peer to peer psy option so....

    for myself the extra security if the tokenized ApplePay makes the effort to seek out stores that accept it is worth it. My last holdout are gas stations. 
    edited January 2018 lolliverwatto_cobra
  • Reply 4 of 52
    But, remember, Walmart Pay is used a lot more at Walmart.

    /s
    chiaLukeCageStrangeDaysRayz2016jbdragonvannygeeAirunJaewatto_cobra
  • Reply 5 of 52
    Cesar Battistini MazieroCesar Battistini Maziero Posts: 161unconfirmed, member
    Speaking at NRF 2018 Retail's Big Show in New York earlier this month, Apple Pay VP Jennifer Bailey presented a speech detailing how iPhone changed the retail landscape, and outlined the tech company's ongoing efforts in the mobile payment marketplace.


    Apple Pay VP Jennifer Bailey. | Source: CNET


    Addressing conference attendees in a speech entitled "The Modern Shopping Experience," Bailey presented a few interesting tidbits relating to Apple Pay growth and adoption, as well as insight into Apple's current and future ambitions for mobile payments services, reports CNET Japan.

    Led by iPhone, mobile is doing more to revolutionize e-commerce than any other platform, Bailey said. Purchases made on smartphones and tablets account for 25 percent of e-commerce transactions in the U.S. The rate of growth for mobile transactions is four times that of desktop, and 10 times that of traditional brick and mortar retail.

    The same phenomenon is occurring outside the U.S. China, for example, sees 80 percent of its e-commerce transactions performed on mobile devices.

    Apple Pay is behind a large chunk of those purchases. According to Bailey, Apple Pay availability was limited to about 3 percent of stores in the U.S. when it launched in 2014, but is now accepted in 50 percent of stores.

    "It's the world's most accepted contactless payment technology," Bailey said.

    Beyond reasonably wide acceptance, the platform plays an integral role in the mobile e-commerce boom. The company provides retailer support in four distinct areas: apps, transaction settlement, loyalty programs and integration between store and mobile.

    On the topic of apps, Bailey noted iOS presents retailers an innovative platform on which they can sell their wares. With iOS 11, sellers can provide customers with unique experiences that harness device hardware like location services, biometrics and, with iPhone X, TrueDepth camera technology.

    Warby Parker's latest app, for example, utilizes TrueDepth to recommend eyewear based on facial maps generated from a user's face.

    Other companies like home decoration firm Wayfair tap into ARKit to offer customers immersive shopping experiences. The Wayfair app allows users to "try out" furniture by placing virtual representations of desired pieces in their home.

    Both Warby Parker and Wayfair accept Apple Pay, meaning innovative sales features are seamlessly merged with fast and secure checkout. That speed and safety sets Apple Pay apart from physical credit card with chip solutions, defining Apple's contribution to EC settlements.

    As for loyalty programs, Bailey highlighted offerings from Kohl's and Walgreens, both of which integrate with the Wallet app and in-store point-of-sale terminals.

    Finally, Bailey touched on Apple's in-house initiatives rolled out through the company's retail locations. Staff members use a Concierge app to manage appointments, while Leader Board acts as an in-depth tool for tracking store performance, POS transactions, Genius Bar assets, repair orders and more.

    The Apple Store app blurs the line between online and physical shopping. Using the app, customers can purchase an item and receive a push notification when it's ready for pickup. Once at an Apple Store, location services determine a device is in the vicinity to trigger another notification with a redemption QR code. Integration with Apple Wallet makes for a seamless checkout experience.

    "You can discover and purchase services and products in new ways, from pickups to recommended personalized products. We will continue to develop [this technology] in the future," Bailey said, according to CNET.
    You know what pisses me off! Brazil has NFC in every terminal in the country and we still have no support for Apple Pay! They are losing a huge opportunity!
    lostkiwiAirunJaewatto_cobra
  • Reply 6 of 52
    I’m finding ApplePay is accepted at more and more places, frequently without the retailers knowledge. Just in the last month or so I discovered the dry cleaner about a mile away and a small diner that serves breakfast and lunch accept it, both unknowingly. 

    There are several local places that I frequent that take ApplePay and typically I can go out without having to carry around my wallet. And I live in rural western Massachusetts, not in a city by any means. 

    Edit: I just remembered, at that diner when using ApplePay I do not need to sign the receipt, but when using my credit card for a similar amount at the same place I did need to sign. So, another little time saver. 

    By the way, the Wayfair app’s ARkit functionality is a joke. I’m not even sure they’re using ARkit. My wife shops Wayfair all the time so I tried her app last night. All it does is overlay the item on the camera view. It doesn’t determine where the floor is, the item is just a 2D picture that can be scaled. Once the camera starts to move the item retains its position on the screen, not in the room. Just goofy. 
    edited January 2018 WTimbermanRayz2016watto_cobra
  • Reply 7 of 52
    It's true that a lot has happened in the last two years. I live in a small town in AZ (pop. 7000), and during that time the local chain supermarket outlet and one of the two local markets, the office supply store, drugstore, liquor store, hardware store and a local winery have all installed working ApplePay terminals. Even one of our gas stations, which just underwent a major renovation, has ApplePay not only in the convenience store, but also at the pumps. And, although they're often overlooked, vending machines all over town have long had contactless payment modules. Restaurants are still a black hole, though. The iPad-to-your-table system that is catching on in California is missing in action here. This is a feature I'm really eager to see, as a single check per table, with person-to-person ApplePay to reimburse the person who picks up said check would be a wonderful timesaver for everyone.
    lolliver
  • Reply 8 of 52
    Soli said:
    ...I honestly can't say I'm seeing it at 50% of the stores I go to.
    Same here.

    Sam's/Walmart? No.
    Lowe's? No.
    Home Depot? No.
    Target? No.
    Gas stations? No.
    Local BBQ place? No.
    Hilton Garden Inn? No.
    Tractor Supply? No.
    Baskin-Robins? Yes.
    Brookshire's? Yes.
    Chick-Fil-A? Yes.

    These are just a few examples. Overall, less than 20% of the places I go accept Apple Pay.
    edited January 2018 patchythepirate
  • Reply 9 of 52

    Warby Parker's latest app, for example, utilizes TrueDepth to recommend eyewear based on facial maps generated from a user's face.

    Other companies like home decoration firm Wayfair tap into ARKit to offer customers immersive shopping experiences. The Wayfair app allows users to "try out" furniture by placing virtual representations of desired pieces in their home.


    I’ve noticed more places that I frequent accept Apple Pay but often times I’m so used to paying with Debit Card with chip that I forget to use it. 

    I call shenanigans on the Warby Parker app. How is that app going to help you with anything but style of the glasses. An optometrist will let you know if you have a stigmatism or retinal cancer and a whole host of eye problems. 
  • Reply 10 of 52
    Soli said:
    I've been a huge advocate for ApplePay and saying that a lot more stores support the service (later on, along with AndroidPay and SamsungPay) than people realize, which includes the retailers themselves*, but I honestly can't say I'm seeing it at 50% of the stores I go to.


    * I've been ordering these free decals for 2(?) years now to give to retailers that support ApplePay but don't know it or advertise it as a way of spreading the word and helping me achieve my goal of no longer having to carry a wallet with any physical cards: https://www.applepaysupplies.com/applepaykit.html
    I agree.

    I also see people utterly confused — even now — regarding their ability to use the ApplePay when they don’t see an AP logo, when most NFC-capable machines allow you to use your phone or Watch. I still believe that its, overall, extremely poor marketing and education by Apple. Also, I maintain that Apple should have got into the hardware piece of of the POS market, essentially giving it away for free and making it up in transaction fees. 
    palomineAirunJaepatchythepiratejony0
  • Reply 11 of 52
    ClassicGeekClassicGeek Posts: 9unconfirmed, member
    JFC_PA said:
     My last holdout are gas stations. 
    And even that is starting to change. My local Sheetz (Central NC) has ApplePay support for pay at the pump even.  As others have remarked sometimes i miss it because i do not notice the contactless symbol.
    JFC_PAAirunJae
  • Reply 12 of 52
    Even when a place accepts Apple Pay in the US, you still have to enter your bloody PIN.  Kind of defeats the whole purpose.  Somebody needs to get their act together.
  • Reply 13 of 52
    waverboy said:
    Even when a place accepts Apple Pay in the US, you still have to enter your bloody PIN.  Kind of defeats the whole purpose.  Somebody needs to get their act together.
    Nope, this depends on the merchant and their POS system. Some may, but it’s not a given or required. I just bought groceries last night and didn’t. 
    AirunJaewatto_cobra
  • Reply 14 of 52
    More places accept it, but these idiot retailers STILL require a signature! That needless requirement degrades the security and anonymity protections Apple Pay promised.
    aminorsixthlolliverwaverboy
  • Reply 15 of 52
    Rayz2016Rayz2016 Posts: 4,561member
    New parking machines at our local mall, with NFC readers fitted at child height for some reason. ApplePay works nicely and you still get a receipt.  
    watto_cobra
  • Reply 16 of 52
    thrangthrang Posts: 764member
    JFC_PA said:
    Rayz2016 said:
    Someone dropping by to declare ApplePay a failure because their local crack dealer doesn’t have an NFC reader in 3… 2… 1…

    Please, smartphones have recently been attributed as one significant driver behind declining urban violence as the drug trade shifts online from street corners. With street corners no longer being fought over there’s fewer murders. 

    And theres that new Apple peer to peer psy option so....

    for myself the extra security if the tokenized ApplePay makes the effort to seek out stores that accept it is worth it. My last holdout are gas stations. 
    Not sure where you live, but in theNY/NJ metro region, theExxon Speedpass app has used Apple Pay for well over a year. Frankly, I used to get gas anywhere, but now I just use Exxon unless no option available. With three credit card fraud episodes in the past year, tokenization is essential.
    palominelolliverwatto_cobra
  • Reply 17 of 52
    macxpressmacxpress Posts: 4,821member
    waverboy said:
    Even when a place accepts Apple Pay in the US, you still have to enter your bloody PIN.  Kind of defeats the whole purpose.  Somebody needs to get their act together.
    Nope, this depends on the merchant and their POS system. Some may, but it’s not a given or required. I just bought groceries last night and didn’t. 
    Did you pay with Debit, or Credit? Even Wegmans which is one of the biggest grocery chains in the US (and the first to support ApplePay BTW) still requires a PIN if you choose debit and a signature if you choose credit and the total is over $50. 
    waverboy
  • Reply 18 of 52
    JFC_PAJFC_PA Posts: 301member
    More places accept it, but these idiot retailers STILL require a signature! That needless requirement degrades the security and anonymity protections Apple Pay promised.
    Not anywhere I use it, the exception is groceries over $75 at Wegmans. 
  • Reply 19 of 52
    SoliSoli Posts: 8,748member
    waverboy said:
    Even when a place accepts Apple Pay in the US, you still have to enter your bloody PIN.  Kind of defeats the whole purpose.  Somebody needs to get their act together.
    I've only ever had to use a PIN when using my debut card at an ATM machine at my bank to retrieve cash or deposit checks… and that's exactly where I want the extra level of security.

    Signing, as mentioned, is still very common, but even that's going away with chip cards as a requirement for MasterCard, and there are already allowances that let smaller purchases be signature free.

  • Reply 20 of 52
    The new Shell station gas pumps installed last month do accept Apple Pay.

    i found that “PIN required” issue to be a mashup of bank+retailer odd backend requirements. Took my credit union and Office Depot about six month to stop that silliness.  Meanwhile, Amex flawless as usual
    watto_cobra
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