Apple Pay Predicted to Account for Half of Mobile Wallet Users by 2020

Discussion in 'MacRumors.com News Discussion' started by MacRumors, Jul 30, 2018.

  1. MacRumors macrumors bot

    MacRumors

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    Juniper Research today published new data outlining predictions for mobile payments processing over the next five years, placing Apple Pay at the forefront in the market ahead of rivals like Samsung and Google. The study looked at Apple Pay, Samsung Pay, Google Pay, and other "OEM Pay" (official equipment manufacturer) wallets.

    In total, OEM Pay users will reach 450 million globally by 2020, and the researchers predict that Apple Pay will account for 1 in 2 of these OEM Pay users at that time. This growth will cause OEM Pay wallets to reach $300 billion in transactions by 2020, representing 15 percent of total contactless in-store transactions within two years.

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    While Juniper Research included newcomers to the mobile payments market like Fitbit Pay and Huawei Pay, they admit that these will likely not grow much and mobile wallets will continue to see leaders in Apple, Samsung, and Google.
    Although mobile wallets will continue to grow, the research shared today also looked at the overall market of contactless payments, which will still see dominance from contactless card payments made using physical credit and debit cards. In-store contactless payments will reach $2 trillion by 2020, making up 15 percent of the total point of sale transactions and driven by "strong adoption" in Europe and countries in the Asia Pacific region.

    Sooner than 2020, contactless payments are already set to exceed the $1 trillion mark for the first time in 2018, one year earlier than Juniper Research previously predicted. These NFC-enabled credit cards began growing in popularity in recent years, arriving at a time when major credit card companies are aiming to simplify the checkout process for customers using both physical and digital cards.

    In another Apple Pay-related research note shared earlier this year, Loup Ventures estimated that Apple Pay was being used on 16 percent of active iPhones worldwide. Looking to the future, Loup Ventures also predicted that Apple's mobile wallet will "gain widespread adoption" over the next three to five years, despite a slow few years of growth that began when Apple Pay launched in 2014.

    Article Link: Apple Pay Predicted to Account for Half of Mobile Wallet Users by 2020
     
  2. keysofanxiety macrumors G3

    keysofanxiety

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    I was extremely skeptical of Apple Pay when it first came out. I'm in the UK with contactless so I thought it was mainly to benefit US consumers where they had to sign cheques and do all these antiquated payment methods we'd got rid of decades ago.

    It's essentially the same process, I told myself - get out your card and put it on the reader. Get out your phone and put it on the reader. What's the difference?

    Well one iPhone X 9 months later and I don't carry my wallet with me any more. There's something really great and secure about Apple Pay. It's nice to have everything in one place with digital receipts when you make payments. Also there's no payment limit like there are with debit cards, unless you decide to shop at Tesco and they have a 30 pound limit on all contactless payments.

    Yeah, I'm definitely not surprised at this news. In fact I could definitely see it being much higher than 50% in a couple of years. Apple Pay slays.
     
  3. recoil80 macrumors 68020

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    My bank doesn't support Apple Pay, so I'm using N26 and I have a debit card. That means I need to transfer money to my N26 account in order to have credit on my Apple pay card. I would be able to use Apple pay almost everywhere, at least here in northern Italy, but I use Apple Pay only if reaching out for my pocket is not convenient, otherwise I'd have to transfer money too often from my bank account to N26.
    As soon as my bank will support Apple Pay I'll use my Watch to pay at every shop/restaurant as long as there is a compatible POS, which is true most of the time.
     
  4. donster28 macrumors 68000

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    Couldn't manage without Apple Pay nowadays. Many times I forgot my wallet at home and Apple Pay came to the rescue.

    Funny how many cashiers still say "That's cool!" when I use my Apple Watch to pay. A real game changer!
     
  5. Iphtashu Fitz macrumors regular

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    #5
    I just wish more big US chains like Home Despot would start supporting contactless payments.
     
  6. voyager77 macrumors member

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    #6
    And yet there are still so many countries in Europe where Apple pay is not available or even in the pipeline....
     
  7. 2010mini macrumors 68040

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    impressive considering Apple was late to the game.
     
  8. Macman8472 macrumors newbie

    Macman8472

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    Yes, totally agree. Forgot my wallet once when I went to Tesco. But I had my iPhone with me. I use it whenever I can. Tesco does have this annoying £30 limit, Waitrose doesn't. Bought loads of things at £60 or £70, went through OK, so not sure what their limit is. Had a meal at Cafe Rouge, it came to £83, that went through OK as well. I wish all Retailers would not have a limit, especially if it's tied to your credit card. So what ever your credit card limit is, that's your limit in store, just like presenting a plastic card.
     
  9. Trip Mitchell macrumors newbie

    Trip Mitchell

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    ...but not at stupid Ingle's markets in the Carolinas - or Publix for that matter. :mad:
     
  10. kupkakez macrumors 68000

    kupkakez

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    I never remember to use it. My husband on the other hand uses apple pay wherever he can.
     
  11. EvilEvil macrumors 6502a

    EvilEvil

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    I used Apple Pay once on a vending machine and they charged me a 50 cent fee for using it. I never used Apple Pay again after that.
     
  12. chabig, Jul 30, 2018
    Last edited: Jul 30, 2018

    chabig macrumors 601

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    #12
    As far as I know, Apple pay was the first tokenized payment system. What others preceded it?
     
  13. trekkie604 macrumors 68000

    trekkie604

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    #13
    You guys say you leave your wallets at home and only use contactless; what about your driver's license? For that reason I always need my wallet...
     
  14. ChrisKe macrumors newbie

    ChrisKe

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    Australia is very late to the game with Apple Pay with 3 of the big 4 banks not supporting it yet. Fortunately they are starting to see the light that this is the future and are “looking into it” as they see more and more transactions lost.

    I have been using it for large and small transactions since about March and like others just leave my wallet at home now. The security of knowing that this technology can’t be skimmed is very reassuring.
     
  15. tmiw macrumors 68000

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    #15
    Interestingly, the free whitepaper Juniper has suggests that Apple Pay is only as popular as it is in the US because Americans basically have no other alternatives for NFC (as in, contactless cards aren't really a thing). If that were to ever change...
     
  16. ChrisKe macrumors newbie

    ChrisKe

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    I put my licence in a pocket in my phone case - problem solved!
     
  17. szw-mapple fan macrumors 65816

    szw-mapple fan

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    Not everyone needs too drive everyday.
     
  18. Relentless Power macrumors Penryn

    Relentless Power

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    So that ‘50 cent vending machine fee’ swayed you from ever Considering Apple Pay again? Seems like you’re looking for a reason to dismiss Apple Pay altogether.
     
  19. Saipher macrumors demi-god

    Saipher

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    #19
    I wonder if Apple gets any money from the transaction fees businesses must pay to the big card companies, such as VISA and MasterCard, from each Apple Pay use. If that's the case, eventually it will be a major source of revenue for Apple.
     
  20. craigmak macrumors member

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    #20
    Was that just because it was apple pay or because it was a credit/debit transaction?

    That's the equivalent of saying - there was an accident on this road yesterday so I'm never going that way again. I find apple pay easy and convenient, not a necessity but an amenity where I don't have to pull out my wallet or CC when needed.
     
  21. EvilEvil macrumors 6502a

    EvilEvil

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    Apple Pay. I'd rather avoid fees as much as possible for anything.
    --- Post Merged, Jul 30, 2018 ---
    Same reason I stopped using BOA for my banking and switched to Schawb. Fees suck.
     
  22. ElZeus macrumors regular

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    #22
    Apple should license the MST tech from Samsung that they use for Samsung Pay. Samsung has said they are open to licensing it out. It's nice not really having to worry if the merchant accepts nfc payments... it just works.
     
  23. Recognition macrumors 6502a

    Recognition

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    #23
    How did the vending machine know you were using Apple Pay?

    Correct me if I’m wrong but... as far as the contactless reader is concerned, Apple Pay appears to be just another contactless card.

    Most readers can’t distinguish between a contactless card or a mobile with nfc.
     
  24. Hazmat401 macrumors newbie

    Hazmat401

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    #24
    I was just about to post this... 90% of my transactions is samsung pay. I'm having a hard time coming back to the iphone. I'm gonna see what the note 9 and the new iphone looks like but I might stay with samsung for another year
    --- Post Merged, Jul 30, 2018 ---
    I was just about to post this... 90% of my transactions is samsung pay. I'm having a hard time coming back to the iphone. I'm gonna see what the note 9 and the new iphone looks like but I might stay with samsung for another year
     
  25. FelixDerKater Contributor

    FelixDerKater

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    #25
    It works well. Saves the day when I forget to bring my wallet to lunch.
     

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