Initial Apple Pay results are in and leading independent research brokers are reporting that using Apple Pay may be able to revive mobile payments, as they have other seemingly dead technologies. The ITG Mobile Payments report shows that Apple Pay comprised 1 percent of digital payment dollars in November alone. The horses are out of the gate.
It may seem like 1 percent is not a lot, but it’s pretty impressive considering that the only people with access to Apple Pay are iPhone 6 users and very few merchants accept this payment method. However, it’s still pretty early for widespread acceptance, even for an Apple product.
In comparison, this November Google Wallet payment made up only 4 percent of digital payment dollars, and that was launched in 2011. Some are speculating that Apple Pay may be moving in on PayPal’s turf, as it is a major player in the mobile payment space. Around 60 percent of new Apple Pay customers used the payment platform several times through November. However, only 20 percent of new PayPal customers used it several times that month.
The top five Apple retailers so far have been Whole Foods (20 percent of Apple Pay transactions), Walgreens (19 percent), McDonald’s (11 percent), Panera Bread (6 percent), and Subway (3 percent). Together these five companies comprise 58 percent of Apple Pay transactions, and 45 percent of dollar spent via the mobile payment app.
Small business owners have not been in a hurry to get on the Apple Pay bandwagon, as it has also largely passed on previous NFC payment systems. Although this is a growing technology, there is still a very small portion of consumers using Apple Pay and the equipment can be expensive, so it is not always a good ROI move for small businesses. However, with EMV implementation this year, 2015 may be the year your business rethinks how it accepts payments, and the Apple Pay results are proof of that.