Apple Pay Responsible for Two of Every Three Contactless Payments on Visa, MasterCard, and American Express

[MacRumors]

Since its introduction in October, Apple Pay has accounted for two of every three dollars spent through contactless payments on Visa, Mastercard, and American Express, according to Apple CEO Tim Cook who shared the information during the company's earnings call for the first fiscal quarter of 2015.

"Apple Pay is off to a very strong start," said Cook, adding that he expects 2015 to be "the year of Apple Pay." About 750 banks and credit unions have signed on to accept Apple Pay, and according to numbers shared by Cook, Apple Pay was responsible for 80 percent of mobile payments at Panera Bread, and at Whole Foods, mobile payments increased by 400 percent.

Earlier information has also pointed to Apple Pay's success. Apple Pay had more than 1 million card activations during the first 72 hours Apple Pay was available, and in November, Apple Pay captured a total of 1 percent of all digital payment dollars.

Thus far, Apple Pay has proven to be most popular at Whole Foods, with the speciality grocery store responsible for 20 percent of all Apple Pay transactions and 28 percent of all Apple Pay spending. Walgreens and McDonald's were also popular with Apple Pay users.

Apple Pay is still in its infancy, limited to the United States. In the coming months, Apple plans to expand to several other locations across Europe, Canada, and Asia. In the United States, Apple Pay now supports cards representing 90 percent of U.S. credit card purchase volume.

Article Link: Apple Pay Responsible for Two of Every Three Contactless Payments on Visa, MasterCard, and American Express

 

[lazyrighteye]

Wow... 2/3.
I still maintain this one of the better, more strategic moves Apple has ever made. The potential benefits for their user base, their ecosystem, their product line, is nothing short of staggering.

Brilliant move. And it's just getting started.

 

[jayducharme]

I'm really excited about Apple Pay. I've used it only occasionally so far, though, because my preferred bank isn't yet on board. But when that happens, I'll pretty much be "cardless". I love the ease of Apple Pay.

 

[bushido]

Apple Pay? Please - I'd be happy to finally be able to use a credit card over here without having to ask first and an awkward moment of silence

 

[JoEw]

I use it daily, hope more stores get on board with offering NFC.

It is the future.

 

[ptb42]

Thus far, Apple Pay has proven to be most popular at Whole Foods, with the speciality grocery store responsible for 20 percent of all Apple Pay transactions and 28 percent of all Apple Pay spending.

I tried to use Apple Pay at Whole Foods, and the authorization failed. Twice. I ultimately had to use a credit card (the same one loaded into my Passbook). I've succeeded elsewhere, so it's not the card/phone.

The checkout clerk wasn't surprised: he said shoppers hadn't had much luck with Apple Pay at that store.

 

[aajeevlin]

As much as I like the whole NFC with Apple Pay I really think Apple needs to do something to push more to widen the availability. I know some stores might resist them, but I'm sure Apple can always kick in some incentives.

So far I have only used Apple Pay with McDonalds, Home Depot, and Walgreen. And I don't even visit any of them that often, less than once a month. It'd be nice if over here stores like Fry's Food or Costco will adapt them.

 

[GenesisST]

I wonder how it will be in countries where contactless payment is already pretty common.

On a lighter note: imagine the day when you can use contactless payment for a lap dance...

 

[SockRolid]

Hey CVS: you s*ck. I used to let the cashiers scan the CVS loyalty program bar code from my iPhone's screen showing the CVS app. No more. If I ever do buy anything at CVS again, I won't be showing the app or my CVS card. And I'll pay cash so you can't track me.

----------

I wonder how it will be in countries where contactless payment is already pretty common.

On a lighter note: imagine the day when you can use contactless payment for a lap dance...

As long as the lap dance isn't contactless, yeah I'm all for it.

 

[peterh988]

On a lighter note: imagine the day when you can use contactless payment for a lap dance...

Our beggars have card readers in the UK, I guess they'll be accepting Apple Pay when its available here!

http://www.standard.co.uk/news/lond...t-cards-im-just-earning-a-living-9979657.html

 

[Crzyrio]

Apple plans to expand to several other locations across Europe, Canada, and Asia. In the United States

I don't see anything specific said about this in the conference call!? We're yall just inferring?

 

[KdParker]

So...Discover is just opting out of Apple pay or what?

 

[mainstreetmark]

As a society, or perhaps just as a country, the vast majority of transactions are still the "hand your card to somebody" type of thing. Every luddite i know fears Apple Pay - usually due to them not wanting to give Apple their CC# - but I do a pretty good job of defeating their fears by pointing out the afore-mentioned "hand your card to somebody" method used in every restaurant I know of. That is ridiculous, in this connected world. Also, Apple already has their CC#, much to their surprise.

But, Apple Pay fails to work at Home Depot (though it is accepted), usually works at McDonalds, always works at Firehouse Subs, and the rest of the time, I don't even bother trying anymore. Why isn't it, for example, at Gas Pumps - those absurd islands of user-interface from the 1980's. A printed receipt?! How quaint.

I also gave a bunch of money to OnlyCoin for some reason. They haven't bothered shipping a product in like 2 years, so money lost. And now that technology is outmoded already.

 

[ron7624]

I'm glad to read these strong results. I use it every chance I get, but not enough places that I frequent take it yet. But, I like the momentum it is picking up.

 

[flyingember]

As much as I like the whole NFC with Apple Pay I really think Apple needs to do something to push more to widen the availability. I know some stores might resist them, but I'm sure Apple can always kick in some incentives.

So far I have only used Apple Pay with McDonalds, Home Depot, and Walgreen. And I don't even visit any of them that often, less than once a month. It'd be nice if over here stores like Fry's Food or Costco will adapt them.

How is 200,000 more locations? Announced today.

 

[2457282]

maybe they need to start selling iphones at WholeFoods.

I know that it is early in the roll out but it does seem interesting that the majority of Apple Pay spending was at WF. I guess this says something about the iphone 6 users.

 

[cogitodexter]

Does anyone have any idea what sort of revenue Apple is earning so far from 'ApplePay'?

 

[dwd3885]

this makes sense since Visa and Mastercard shut out the other popular mobile payments - Google Wallet and Softcard.

 

[Iconoclysm]

this makes sense since Visa and Mastercard shut out the other popular mobile payments - Google Wallet and Softcard.

It makes sense since people with iPhones are usually more affluent and because Apple Pay is far more popular than Google Wallet ever was.

 

[urbanslaughter1997]

Headline and Body do not agree

The headline of this article, "Apple Pay Responsible for Two of Every Three Contactless Payments on Visa, MasterCard, and American Express," does not say the same thing as the body of the article, "Since its introduction in October, Apple Pay has accounted for two of every three dollars spent through contactless payments on Visa, Mastercard, and American Express." For both of these statements to be true, you must presume that every payment is of an equal amount. If every Apple Pay payment is much larger than other contactless payments then more than every two of three dollars would be from Apple Pay or vice versa. You should check your information and correct this discrepancy.

I would love to use Apple Pay, just haven't had the opportunity to use it yet. I'm looking forward to trying it soon.

 

[kdarling]

The headline of this article, "Apple Pay Responsible for Two of Every Three Contactless Payments on Visa, MasterCard, and American Express," does not say the same thing as the body of the article,

Good eye. The title is wrong. Cook said, "Apple Pay makes up more than $2 out of $3 spent on purchases using contactless payment across the three major U.S. card networks."

Does anyone have any idea what sort of revenue Apple is earning so far from 'ApplePay'?

The latest figures I've seen said NFC payments were running about $4B a year in the US right now.

That's about 11M a day. If Apple is 2/3, that's $7M a day. Their cut is 0.15% or ~$11,000 a day.

According to predictions, by the end of the year that should increase by at least a factor of four or five. Then it really goes up after that. (Assuming that people adopt it in a big way.)

this makes sense since Visa and Mastercard shut out the other popular mobile payments - Google Wallet and Softcard.

What are you talking about?

It makes sense since people with iPhones are usually more affluent and because Apple Pay is far more popular than Google Wallet ever was.

It's not a popularity contest between wallets, because NFC Google Wallet isn't available on iOS, and NFC Apple Pay isn't available on Android.

 

[aajeevlin]

How is 200,000 more locations? Announced today.

Just looked into that "new locations", mostly are vending machines and self-parking. It's good, but I honestly don't think it's what most people are looking for.

 

[lars666]

Apple Pay? Please - I'd be happy to finally be able to use a credit card over here without having to ask first and an awkward moment of silence

I don't know about Spain, but you certainly shouldn't have any problems here in Germany. (Seeing that you've listed both countries as your location.)

 

[bushido]

I don't know about Spain, but you certainly shouldn't have any problems here in Germany. (Seeing that you've listed both countries as your location.)

really? the times ive tried to pay with a credit card at KFC & Dunkin Donut they told me i could only use a cc for anything over 10 bucks. not one supermarket i go to accepts credit cards. cinemaxx charges an additional fee for paying with credit card too. never tried at a Restaurant though. i just dont bother anymore

 

[lars666]

really? the times ive tried to pay with a credit card at KFC & Dunkin Donut they told me i could only use a cc for anything over 10 bucks. not one supermarket i go to accepts credit cards. cinemaxx charges an additional fee for paying with credit card too. never tried at a Restaurant though. i just dont bother anymore

Okay, in these cases you're probably right. I guess credit cards are mostly used for more pricey items here (e.g. buying clothes or whatever), and in my experience this works quite well. For paying smaller things it's better to use a EC card - but as you've correctly mentioned, they are always stores who don't like to accept card payment under €10 (no matter if credit or EC card).