Apple Pay Used on 16% of Active iPhones Worldwide, Widespread Adoption Still Expected in 3-5 Years

[MacRumors]

This morning, Loup Ventures shared new information on Apple Pay adoption, estimating that there were 127 million global Apple Pay users by the end of 2017, a jump from 62 million the previous year. Given that there are about 795 million active iPhones around the world, this means that about 16 percent of iPhone owners have activated Apple Pay.

Of that 16 percent base, five percent are located in the United States and 11 percent are international users. Loup Ventures broke these numbers down further, pointing out that around 38 million people use Apple Pay in the U.S., and 89 million use Apple's mobile wallet globally.

The Apple Pay review also has a few other tidbits of research, including that the number of banks globally supporting Apple Pay have increased in the past year by 41 percent, to total 2,707 banks. Loup Ventures checked the top 100 retailers in the U.S. for Apple Pay compatibility as well, and found consistent growth of adoption across many online resources. In the last year, Apple Pay adoption in these retailers' apps grew 9 percent, mobile sites grew 85 percent, and desktop sites grew 56 percent.

We completed our annual Apple Pay review and found year over year growth has been impressive with active users more than doubling (source: Apple), transactions more than tripling (source: Apple) and online merchant adoption increasing by ~50% (source: Loup Ventures). That said, we believe only 16% of global iPhone users have turned on Apple Pay. We remain optimistic that Apple Pay will gain widespread adoption over the next 3-5 years given integration OS and iOS makes it the easiest to use digital wallet.

Apple first debuted Apple Pay in the fall of 2014, and although many retailers joined in support of the platform it has faced push back from companies like Target and Walmart as each try to develop their own digital wallet service. Last spring, Apple said it wasn't worried about the slow adoption of Apple Pay because it saw the mobile wallet as on track to soon become its customers' "primary payment system."

In an interview around the same time, Eddy Cue said, "Does it matter if we get there in two years, three years [or] five years? Ultimately, no." Although Apple executives have remained in vocal support of Apple Pay, at the time of the launch consumer reticence to support Apple Pay was said to have permeated within the company, to the point where some executives "were reluctant to promote it." Recent ads for iPhone have been heavily focused on the iPhone X's new features, and the latest Apple Pay-focused commercials date back to 2015.

Despite the slow adoption, Loup Ventures analyst Gene Munster said he and the researchers "remain optimistic" that over the next three to five years, Apple Pay will see ongoing, gradual growth and eventually "gain widespread adoption." Although the report doesn't discuss rival mobile wallets specifically, it states that Apple Pay is "the easiest to use digital wallet" because of its deep integration into iOS.

Article Link: Apple Pay Used on 16% of Active iPhones Worldwide, Widespread Adoption Still Expected in 3-5 Years

 

[Yellowbean12]

I've basically forgotten the PIN for my debit card thanks to Apple Pay.

 

[TheMBC]

Given the image used in this post, I for one have been using it a lot this year since Chase Freedom is giving 5% cashback on Apple Pay (and other mobile payment services) this quarter.

But for real, I wish more stores accepted Apple Pay. I’d use it all the time — it’s so much easier.

 

[ghost187]

You can never depend on Apple Pay 100% and the only one I heard that works everywhere is Samsung Pay.

 

[OllyW]

I can use it a lot more often now that more and more shops in the UK are scrapping the £30 limit.

 

[Boatboy24]

I use it all the time with my watch. Am still surprised at how often I get the "Did you just pay with your watch? That's so cool!" reaction. You'd think after almost four years, people would be starting to figure this out. But this reaction continues and comes from all types - young and old.

 

[tardegrade]

There are very few places that I personally shop at, here in the UK, that don't support it. And it's pretty flawless.

The other week I forgot my wallet for the first time in many years, and didn't realise until I got to the checkout. Not an issue thanks to Apple Pay. Very very handy.

I just wish more of my bank cards would support it.

 

[JosephAW]

Living in a small town most of the merchants are using some third party POS system that only supports other payment systems or none at all. And the big stores like Walmart are refusing to work alongside with Apple.
I often try Apple Pay when a NFC is flashing and once and a while I'll find a new merchant that works and the employees are shocked and amazed that it works and sometimes it's a two step procedure where I have to press a "credit" button on the device.

 

[ssl0408]

I have never used it. It seems like too many steps. It’s still easier to just pull out the credit or debit card.

 

[Jarman74]

I've been using Apple Pay at my usual grocery store for the last few months and it has worked simply great. It's just a real shame that such a great feature has been hindered by the painfully slow international adoption rate.

Hopefully Apple Pay Cash will be unlocked much sooner than the three years I had to wait for.

 

[Xavier]

I would use it more often if more places accepted it. I believe Giant Eagle (and also Get GO) just adopted it, which are my 2 most frequent stores.

 

[69Mustang]

I've been using Apple Pay at my usual grocery store for the last few months and it has worked simply great. It's just a real shame that such a great feature has been hindered by the painfully slow international adoption rate.

I'm pretty sure it's the US adoption rate that's lagging at 5% versus 11% internationally.

 

[djcerla]

It’s the secret Apple Watch killer app.

 

[ghostface147]

Widespread use....yeah ok. Some businesses still don’t have the chip activated on their terminals. Walmart doesn’t take Apple Pay nor does Target (but does accept it in their app). CVS doesn’t either. Kroger’s doesn’t accept it. It’s going to be a niche market for a very long time.

 

[dominiongamma]

I've basically forgotten the PIN for my debit card thanks to Apple Pay.

A lot of places still haven’t accepted Apple Pay still have to use pin at a lot of places

 

[votdfak]

It's awesome on Apple Watch. Ta na na na na.

 

[TTTedP]

I used it all the time but less so since getting the X. It feels more cumbersome with FaceID.

 

[Tobsen]

Still missing in the half of Europe (e.g. Germany, Austria, Poland, Benelux)

 

[Juicy Box]

I have never used it. It seems like too many steps. It’s still easier to just pull out the credit or debit card.

I kind of feel the same way.

I know there are other benefits of Apple Pay, but for ease of use, convenience, and speed, a card works just as well.

I set up Apple Pay on my last iPhone, a 6s Plus, only used it a few times, but found that I would accidently start the Apple Pay on the lock screen way to often.

When I downgraded my iPhone to a SE, I never bothered to set up Apple Pay.

I might set it up, and disable the "quick launch", just so I have a method of payment if I forget my wallet.

Although, I hardly ever forget my wallet, I tend to forget my phone a lot more often than my wallet.

 

[Goner259er]

I would use it more but I hate having to have my phone locked all the time

 

[Kaibelf]

Given the image used in this post, I for one have been using it a lot this year since Chase Freedom is giving 5% cashback on Apple Pay (and other mobile payment services) this quarter.

But for real, I wish more stores accepted Apple Pay. I’d use it all the time — it’s so much easier.

From what I understand, most stores these days do if they have any kind of size. I am even seeing it pop up at kiosks because people are finally updating their Square readers.

 

[Piggie]

I've basically forgotten the PIN for my debit card thanks to Apple Pay.

I can't as I want to buy stuff that's over £30 in the UK

 

[EdT]

I have had Apple Pay since it had both banks and merchants who accepted it in my area, but I don’t use it much. In Omaha NE the number of local merchants who accept AP is very small, and some of the national companies companies that advertise that they accept it don’t here in Nebraska, mainly because they still haven’t updated their card readers to NFC.

I think merchant acceptance is slow for the very reason I’m interested in it: my identity is anonymous to the company so they can’t track who I am and what I buy as easily. Everybody datamines now to try and profile customers and target ads and coupons. I use it when and where I can. I haven’t had a problem using it in places where it’s accepted.

 

[Piggie]

I kind of feel the same way.

I know there are other benefits of Apple Pay, but for ease of use, convenience, and speed, a card works just as well.

I set up Apple Pay on my last iPhone, a 6s Plus, only used it a few times, but found that I would accidently start the Apple Pay on the lock screen way to often.

When I downgraded my iPhone to a SE, I never bothered to set up Apple Pay.

I might set it up, and disable the "quick launch", just so I have a method of payment if I forget my wallet.

Although, I hardly ever forget my wallet, I tend to forget my phone a lot more often than my wallet.

Indeed.

Apple or Google pay won't work in the vast majority of places, even things like normal car parks in the UK.
So I need to always take my wallet anyway for cash, and in there is my credit card, which I just simply use all the time.

Cards don't even replace cash yet, despite so many many years, god knows how long before mobile payments can be relied upon as you only means of payment without the fear of getting stuck.
If you have a fixed routine, and know the stores you visit each day and know they take mobile payments then great.
But that's not reality

 

[Kaibelf]

Widespread use....yeah ok. Some businesses still don’t have the chip activated on their terminals. Walmart doesn’t take Apple Pay nor does Target (but does accept it in their app). CVS doesn’t either. Kroger’s doesn’t accept it. It’s going to be a niche market for a very long time.

You handpicked a selection from the CurrentC failed project as an example? For every Walmart and Target there's about a dozen competitors who do. Kroger doesn't? Who cares? Whole foods on the high end and Safeway on the downmarket do. CVS is IN Target so I'm not surprised they are still trying to avoid it, but RiteAid and Walgreens are right across/down the street in most cases and take it (not to mention CVS is a dump by comparison). At this point the majority of major retailers aren't trying to force people into their dopey apps for the purposes of making purchases because it's annoying.

In fact, people who aren't overly concerned about that absolute lowest price don't care at all. They just want to shop without it being a huge ordeal, get to a checkout that has someone actually there (or a self-check that isn't always down), and get out of there at a reasonable price that doesn't necessarily have to be as low as Walmart. I don't know ONE person in my life who says "you know, I'm really glad I went to Walmart because it was a pleasure to shop there."