Apple Pay Now Supported by 36% of Merchants in United States

[MacRumors]

Apple Pay is now accepted by 36 percent of merchants in the United States, according to research conducted by retail consulting firm Boston Retail Partners and shared by NFC World. That's up from 16 percent last year.

Boston Retail Partners derived its information from a survey of more than 500 top North American retailers.

22 percent of retailers who don't currently support Apple Pay said they plan to accept the payments service within the next 12 months, while 11 percent plan to do so in the next one to three years. 31 percent plan to take a "wait and see" approach before implementing Apple Pay support.

PayPal was the next most widely accepted payments service at 34 percent, while MasterCard's PayPass came in third with 25 percent. 24 percent of merchants claimed support for Android Pay, while 18 percent said they accept Samsung Pay. Given that many of these technologies are all NFC-based and accepted anywhere NFC payments are available, it seems merchants may be referring to "official" support or may be unaware of the way contactless payments work.

"PayPal has been bumped out of its top spot in this year's survey, with Apple Pay now being accepted at 36% of the retailers participating in the survey. This is up significantly from 16% last year, and signals a growing acceptance by retailers and customers."

"This year, fewer retailers are adopting a wait and see approach for Apple Pay and PayPal -- likely because of the growing support from the payment software ecosystem and the acceptance for these mobile payments by the public."

During Apple's recent first quarter earnings call, Apple CEO Tim Cook said Apple Pay usage had tripled over the course of 2016. Transaction volume was up more than 500 percent year-over-year, and according to Cook, more than two million small businesses now accept Apple Pay.

Article Link: Apple Pay Now Supported by 36% of Merchants in United States

 

[44267547]

I'm still surprised by amount of retailers in my area who don't support Apple Pay. I don't use it as much as I thought I would, even with my Apple Watch. Maybe it's because I just prefer the plastic. Is plastic that old school?

 

[magicvash]

The problem is, most cashiers don't know that NFC payments are supported. Or, the machine is kept behind the counter, and they ask for your credit card to swipe it. Then there's all the times were the NFC part doesn't work randomly, and so you're stuck swiping were inserting the trip.There needs to be a lot more training at these retailers to update their staff. Hell, even at McDonald's, which was supposed to have Apple Pay since forever, I find that some of the staff are constantly shocked/surprised. The drive-through is even more of a pain, because they have to take out the credit card reader machine, and show it to me. Almost makes it easier to get my fat ass out of the car and walk inside the store

 

[tmiw]

I'm not sure much stock should be placed in something that splits out Android Pay, Apple Pay, PayPass, Samsung Pay and Softcard since you basically take all of them if you can accept NFC.

Also, Softcard doesn't exist anymore.
[doublepost=1486498811][/doublepost]

The problem is, most cashiers don't know that NFC payments are supported. Or, the machine is kept behind the counter, and they ask for your credit card to swipe it. Then there's all the times were the NFC part doesn't work randomly, and so you're stuck swiping were inserting the trip.There needs to be a lot more training at these retailers to update their staff. Hell, even at McDonald's, which was supposed to have Apple Pay since forever, I find that some of the staff are constantly shocked/surprised. The drive-through is even more of a pain, because they have to take out the credit card reader machine, and show it to me. Almost makes it easier to get my fat ass out of the car and walk inside the store

Our terminals are massive because reasons, so the drive through is going to be a stupid hassle regardless of restaurant. Other countries use smaller terminals that are easier to pass out the window.

 

[TurboPGT!]

I'm still surprised by amount of retailers in my area who don't support Apple Pay. I don't use it as much as I thought I would, even with my Apple Watch. Maybe it's because I just prefer the plastic. Is plastic that old school?

Personally, now that the "chip" is everywhere, this was all the motivation I needed to start looking for Apple Pay.

Whoever designed the chip system should be ashamed. Way worse than swiping ever was.

I especially like the horrid error tone that plays to tell you to remove your card after a successful transition.

 

[ArtOfWarfare]

It took a lot longer to reach this point than I expected.

Still waiting on Walmart, Home Depot, Gas Stations and restaurants to start taking Apple Pay so I can stop carrying my credit card everywhere with me... but at least all the grocery stores seem to be on board now (I'm amazed Market Basket takes it - I swore hell would freeze over before Market Basket would take Apple Pay.)

 

[konqerror]

What a flawed survey. PayPass is contactless, so merchants who accept PayPass also accept Apple Pay, Android Pay and Samsung Pay. There's no reason why Android Pay and Samsung Pay are less than PayPass.

They also left out payWave and expressPay (Visa, AMEX Contactless). They should have lumped contactless into one. They did Visa Checkout but left out the equivalent Masterpass.

It also is lumping in-person and online payments into one. Visa Checkout is online-only, Paypal and Bitcoin are mostly online, a bunch are both. And of course, there's a bunch of merchants who support Apple Pay online only, like Target.

 

[tmiw]

Personally, now that the "chip" is everywhere, this was all the motivation I needed to start looking for Apple Pay.

Whoever designed the chip system should be ashamed. Way worse than swiping ever was.

I especially like the horrid error tone that plays to tell you to remove your card after a successful transition.

Blame the retailers; chip can actually be close to the same speed as swiping if desired. I mean, Walgreens was able to do it no problem.
[doublepost=1486499402][/doublepost]

It took a lot longer to reach this point than I expected.

Still waiting on Walmart, Home Depot, Gas Stations and restaurants to start taking Apple Pay so I can stop carrying my credit card everywhere with me... but at least all the grocery stores seem to be on board now (I'm amazed Market Basket takes it - I swore hell would freeze over before Market Basket would take Apple Pay.)

Safeway and Kroger still aren't, unfortunately. On the other hand, a Grocery Outlet just opened across the street from Vons and they take AP.

As for restaurants, I really don't see them accepting it. The chip-enabled ones I've been to still take cards away from tables, making Apple Pay impossible.

 

[konqerror]

Whoever designed the chip system should be ashamed. Way worse than swiping ever was.

The French. It was a ploy to boost their smart card industry. To be fair, it was developed in the early 1990s before the Internet, it was indeed much faster back then since it avoided the terminal making a dial-up call. The contactless/Apple Pay specification did fix the speed issue, it just wasn't extended to contact until recently.

 

[ArtOfWarfare]

As for restaurants, I really don't see them accepting it. The chip-enabled ones I've been to still take cards away from tables, making Apple Pay impossible.

Several chains allow you to swipe you card at the table... Applebees, Chili's, Olive Garden, Uno... I see no reason they couldn't go from that to taking Apple Pay.

 

[NexusUser]

Samsung pay is accepted basically everywhere a regular credit card is accepted... This might as well have been a survey of how well marketed are these tech terms!

 

[44267547]

Personally, now that the "chip" is everywhere, this was all the motivation I needed to start looking for Apple Pay.

Whoever designed the chip system should be ashamed. Way worse than swiping ever was.

I especially like the horrid error tone that plays to tell you to remove your card after a successful transition.

True. Although the Chip hasn't fully expanded to all locations yet, but is closing the gap every day. Even though it's an inconvenience in some respects, it's meant to protect the consumer from fraud. And if it protects Me from someone wanting to deprive me of my
Money, then I commend the concept behind the chip card.

 

[tmiw]

Several chains allow you to swipe you card at the table... Applebees, Chili's, Olive Garden, Uno... I see no reason they couldn't go from that to taking Apple Pay.

I still don't see many takers, though. Most restaurants cannot justify the $200-300 per table (plus whatever maintenance charges they have to pay) for tableside tablets. Hell, most likely can't justify the European style wireless terminals either since the US is chip and signature and the card networks still allow tip adjust.

 

[Robert.Walter]

The problem is, most cashiers don't know that NFC payments are supported. Or, the machine is kept behind the counter, and they ask for your credit card to swipe it. Then there's all the times were the NFC part doesn't work randomly, and so you're stuck swiping were inserting the trip.There needs to be a lot more training at these retailers to update their staff. Hell, even at McDonald's, which was supposed to have Apple Pay since forever, I find that some of the staff are constantly shocked/surprised. The drive-through is even more of a pain, because they have to take out the credit card reader machine, and show it to me. Almost makes it easier to get my fat ass out of the car and walk inside the store

My 84yo mom has been using Apple Pay since 10/2014 and she has to school the kids on the register at McDonald's all the time. She says it's not the kids, it's bad training from managers. Some McDonald's even have trouble to get the POS terminal out the window because the cord is so short.

 

[Paul Dawkins]

Yet still there is no online bank that anyone in Europe can sign up for to get that ****ing android pay or Apple Pay. This is 2017.

 

[Robert.Walter]

The French. It was a ploy to boost their smart card industry. To be fair, it was developed in the early 1990s before the Internet, it was indeed much faster back then since it avoided the terminal making a dial-up call. The contactless/Apple Pay specification did fix the speed issue, it just wasn't extended to contact until recently.

Ploy? It pretty much also put an end to credit card fraud in Europe which at the time was spiraling out of control. Now the USA, 10 years behind is fraud central due to the mere existence of the antediluvian mag strip.
[doublepost=1486500169][/doublepost]In the meantime, banks are pumping out cards with embedded RF chips for contactless payment that are easily skimmed. I imagine the inertia of this initiative will carry that for a couple of years before this feature is sunsetted due to increased contactless skimming and the ubiquity of mobile payments.

 

[Boatboy24]

It took a lot longer to reach this point than I expected.

Still waiting on Walmart, Home Depot, Gas Stations and restaurants to start taking Apple Pay so I can stop carrying my credit card everywhere with me... but at least all the grocery stores seem to be on board now (I'm amazed Market Basket takes it - I swore hell would freeze over before Market Basket would take Apple Pay.)

You can use ApplePay at Exxon/Mobil with their Speedpass+ app. Not quite as convenient as Apple, but at least my CC info isn't changing hands. Would be nice if other gas stations got on the bandwagon though.

 

[konqerror]

Ploy? It pretty much also put an end to credit card fraud in Europe which at the time was spiraling out of control. Now the USA, 10 years behind is fraud central due to the mere existence of the antediluvian mag strip.

It doesn't eliminate fraud due to security flaws. You don't understand the history. EMV was designed to allow offline transactions because the cost of phone calls in PTT-monoply Europe was too high. The security was a necessary feature of that. It was found to be broken multiple times and there's multiple incremental updates to it. There are a number of holes that EMV can't fix, the biggest is that your credit card number and expiration date are not encrypted.

The US did not have the high phone cost issue and relied on online authentication which is arguably more secure. For example, if two transactions occur at a distance too far to travel in a short time, the system can detect. It can also learn your spending habits, they use neural networks now to figure them out. You can't do that with EMV offline.

In the US, all of our EMV is fundamentally online. All the offline authentication features that EMV incorporates are worthless here. These features require the card to stay in the terminal during the whole transaction which is what people hate.

Contactless stripped out the offline features, which is why its tap and go.

Also, Europe has shown that overall fraud does not decrease. It simply shifts to card-not-present sales (Internet).

 

[MLVC]

Still waiting for it "patiently" in the Netherlands, Germany, Belgium etc.... Come on Apple (and banks)!

 

[odditie]

Personally, now that the "chip" is everywhere, this was all the motivation I needed to start looking for Apple Pay.

Whoever designed the chip system should be ashamed. Way worse than swiping ever was.

I especially like the horrid error tone that plays to tell you to remove your card after a successful transition.

Yeah, the annoying sounds they've had to build into it is a product of the bad design.

Without the sound, sadly, many people would forget their cards due to the way the human mind handles sounds. The bad design in this case has created an additional annoyance to resolve it's biggest flaw. What we're left with is a bad experience instead.

 

[Paul Dawkins]

Also, Europe has shown that overall fraud does not decrease. It simply shifts to card-not-present sales (Internet).

Well around 100 years from now when Apple Pay will be available on more than 5 online shops it will decrease.

 

[enthusiastic]

The problem is, most cashiers don't know that NFC payments are supported. Or, the machine is kept behind the counter, and they ask for your credit card to swipe it. Then there's all the times were the NFC part doesn't work randomly, and so you're stuck swiping were inserting the trip.There needs to be a lot more training at these retailers to update their staff. Hell, even at McDonald's, which was supposed to have Apple Pay since forever, I find that some of the staff are constantly shocked/surprised. The drive-through is even more of a pain, because they have to take out the credit card reader machine, and show it to me. Almost makes it easier to get my fat ass out of the car and walk inside the store

I agree with the more training is required part. However, I have been noticing recently that establishments which I thought would never get Apple Pay have been embracing it. Unless, of course, you are Chipotle. Then you use 17th century tech where you swipe the card on a monitor. Also, cashiers themselves ask me "Oh, Apple Pay?" when I say "Credit card" and pull back my hoodie's sleeve to pay with my ᴡᴀᴛᴄʜ.

I also make it a point to mention to small businesses about fraud liability and ease of use of NFC payment systems whenever I encounter chatty cashiers.

 

[Labeno]

It may be supported by 36% of retailers, but it that counted incorrectly... is McDonalds counted once for the entire chain, or does each location get counted. The only reason I bring that up, is pretty much 99% of the places that accept money in New England don't support it, nor have most of them even heard of it. Forget about any non-chain store having it. Even at Walmart, they still act like they never header of it. It's hard for me to believe 36% actually support it. Also, even if you are a McDonald's frequenter, it a pain to use it at the drive through. I love the Apple Pay concept, but it doesn't really exist yet.

 

[avanpelt]

As others have said, this seems like little more than a case study in how well the payment platforms are being marketed. It is my understanding that once you can accept any NFC-based payment, you can accept them all -- regardless of the device the customer is using. Samsung Pay is a little different since it can mimic a card swipe.

 

[Gasu E.]

I'm still surprised by amount of retailers in my area who don't support Apple Pay. I don't use it as much as I thought I would, even with my Apple Watch. Maybe it's because I just prefer the plastic. Is plastic that old school?

I've seen big upsurge in retailer acceptance in my area. All three supermarket chains I go to, my favorite liquor store, my nearby hardware store, etc.