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Contactless payment methods like Apple Pay will rise sharply in the United States, from less than 2 percent of transactions this year to 34 percent by 2022, according to a new report shared by research firm Juniper Research.

chip-and-pin-terminal.jpg
Payment terminal with chip-and-PIN card support via Worldpay

Juniper Research argued that customer dissatisfaction at the slower speeds of chip card transactions, like chip-and-signature or chip-and-PIN, will further increase the adoption of smartphone-based payments, an area currently dominated by Apple Pay.

The transition towards contactless payments, and even the EMV standard that chip-and-PIN cards are based on, has been much slower in the United States compared to many other countries around the world.

In Canada, for example, chip-and-PIN cards have been common for over five years, while at least 80 percent of Canadian retailers are now accepting contactless payments, according to payment processor MONEXgroup.

Juniper Research expects the United States to follow a similar growth curve as Europe, where EMV and contactless payments are also widespread.

Apple CEO Tim Cook recently confirmed Apple Pay momentum is "strongest in international markets," where he said the infrastructure for mobile payments has developed faster than in the United States.

Cook added that three out of four Apple Pay transactions happen outside of the U.S., where the service first launched in October 2014.

Apple Pay will support Venmo-like peer-to-peer payments in the Messages app on iOS 11, starting in the United States. Apple Pay is also expanding to Denmark, Finland, Sweden, and the United Arab Emirates later this year.

Article Link: Apple Pay Usage Estimated to Rise Sharply in United States Due to Frustration With Slow Chip-and-PIN Cards
 
Having used credit cards with chips in Europe, I find the time the card needs to be in the reader almost instantaneous, especially compared to the readers here. There are some stores, Costco for instance, where the time the card needs to remain inserted to be quite short. This all seems to be a software problem.
As far as Apple Pay, I use it whenever I can. It is much faster, and since it doesn't actually use the account number printed on the card, it is safer too. It is also amusing to watch the reaction of some people who've never seen someone pay for something by holding their wrist (with an Apple Watch) over the card reader. Best comment I've gotten was, "Oh my, that just freaked me out."
 
I'm not sure what this article is trying to say. The vast majority of EMV "chip" cards issued in the United States are "chip and signature," not "chip and PIN."

If the analyst is claiming that contactless payments will become more popular in the United States as time marches on, that's not particularly interesting news. As it happens, the U.S. is a world leader in the invention, deployment, and adoption of contactless payments. Two decades ago, in 1997, Mobil (now part of Exxon) introduced Speedpass, a contactless payment system that works at every Mobil/Exxon fuel station and convenience store. Speedpass reached over 7 million users within 7 years. Speedpass was probably the first retail contactless payment system in the world, at least at significant scale, and predated other systems by several years.
 
From my experience Apple Pay is fastest .
Swiping is second fastest .
Getting the old machines to make a copy of your credit card ( see video
)
Is faster than inserting chips .
Most places have broken chip readers so it's wildly inconsistent but when they do work it takes a good minute to process .
 
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Surprised to read that 3 out of 4 Apple Pay transactions happen outside of the US considering it was the first country to adopt Apple Pay.

Living in the UK, I've only ever used Apple Pay twice in the last 3 years as it's now commonplace for most credit and debit cards to have Contactless technology built into the card itself. Much easier and quicker to just pull out your debit card and touch it on the terminal and be done rather than having to play around with your iPhone. Heck, even one of the major supermarkets in the UK has recently issued millions of customers with their new contactless loyalty/points cards with the same technology.
 
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What the article didn't mention is that we've (Canada) had contactless tap-to-pay for years as well. It's hard convincing my friends to use Apple Pay when they can just tap their credit card instead.

For us, the only benefit is security. Speed is a non issue.
 
I'd love this to be true, but I'm skeptical. As much of a pain the chips have been, Apple Pay doesn't seem to have the advantage of easier use because of poor retail installation. Granted I'm in NYC which is already credit card hostile, but the outlook is bleak. I see:

  • Half of small retailers that do accept credit cards don't accept Apple Pay. It's particularly unfortunate to see places that upgraded their machines to accept the chip and not Apple Pay
  • Even if a retailer does accept electronic payments, the cashier doesn't know about it. I've taught several cashiers, including some who swore that it wouldn't work.
  • Many retail installations are set up poorly, requiring multiple unnecessary steps like indicating whether you are paying by credit/debit, signing for small purchases even when the store doesn't require it for regular card purchases

The only places I trust to use Apple Pay in NYC are big chain drug stores, an I think I've earned the reputation as the guy who does Apple Pay at my local one...
 
Surprised to read that 3 out of 4 Apple Pay transactions happen outside of the US considering it was the first country to adopt Apple Pay.

Living in the UK, I've only ever used Apple Pay twice in the last 3 years as it's now commonplace for most credit and debit cards to have Contactless technology built into the card itself. Much easier and quicker to just pull out your debit card and touch it on the terminal and be done rather than having to play around with your iPhone. Heck, even one of the major supermarkets in the UK has recently issued millions of customers with their new contactless loyalty/points cards with the same technology.
Much quicker to double press the button on the side of my watch and hold it to the reader than pull out my wallet then pull out a card.
 
We don't even have Chip-and-PIN, we have Chip-and-Signature which is basically an half-assed solution. Anybody can scribble anything in the signature box, there is nothing to verify. Half the time my signature doesn't even match the back of my card.

Then of course it's so slow. It really holds up the line and there has been many times after a few minutes the chip didn't get read you need to swipe it... contactless should be standard on all the POS systems regardless if it's Apple Pay, Android Pay, whatever Pay...
 
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I'm a points whore and swap out credit cards on a monthly basis to get the maximum points. First off, Chase doesn't support Apple Pay for some of their cards, and it's mush faster and easier to pop the right card out of my wallet before I get to the cashier. By the time I hold my phone to the reader it's already turned itself off and I have to turn it back on and select the right card AGAIN.
 
I'm not sure what this article is trying to say. The vast majority of EMV "chip" cards issued in the United States are "chip and signature," not "chip and PIN."
This caught my eye too. I can't log in to view the research, but what's viewable without logging in says chip card transactions. If the research said chip-and-PIN I'd be really surprised.
 
Pay is so easy and convenient. It baffles me that more people don't use it.
Horses for courses, so is contactless. For now the limit is £30 where I am, (might be more haven't checked lately). I reckon I could pay for something with just as much ease as you by using my card.
 
Much quicker to double press the button on the side of my watch and hold it to the reader than pull out my wallet then pull out a card.
That's great, but I don't have an Apple Watch like most and always have my wallet in my pocket with only 2-3 cards. Literally takes less than a couple of seconds to pull out my debit card, tap and go.

Apple Pay on the iPhone however has always been slow and embarrassing to use. Half the time it would tell me to try again and end up causing queues and embarrassment trying to pay with my phone. It's much easier to just pull out my card, tap and go, especially on the London Underground and buses where there's crowds of people behind you all trying to make a swift exit out of busy stations.

What the article didn't mention is that we've (Canada) had contactless tap-to-pay for years as well. It's hard convincing my friends to use Apple Pay when they can just tap their credit card instead.

For us, the only benefit is security. Speed is a non issue.
That's also the same experience in the UK. Contactless debit/credit cards are more simpler. The only use I see with Apple Pay is having it as a backup if you've left your wallet at home.
 
I'm a points whore and swap out credit cards on a monthly basis to get the maximum points. First off, Chase doesn't support Apple Pay for some of their cards, and it's mush faster and easier to pop the right card out of my wallet before I get to the cashier. By the time I hold my phone to the reader it's already turned itself off and I have to turn it back on and select the right card AGAIN.
Me too. I have Apple pay registered but never once used it yet. Cards are just so easy.
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Much quicker to double press the button on the side of my watch and hold it to the reader than pull out my wallet then pull out a card.
No disrespect, I think we're obsessed with getting things done right now these days.
 
I have never seen Apple Pay live in action. What is taking so long? Where I live, contactless terminals are ubiquitous, the infrastructure is highly standardized and you only need to enroll 5 banks to achieve >90% market penetration. Banks are eager to adopt new technologies like Apple Pay. Yet zero movement. Why? Apple doesn't care about countries besides the US or UK I think.
 
Having used credit cards with chips in Europe, I find the time the card needs to be in the reader almost instantaneous, especially compared to the readers here. There are some stores, Costco for instance, where the time the card needs to remain inserted to be quite short. This all seems to be a software problem.

The software on a lot of readers makes the time you need the card in the reader 20 seconds or more. This is a LONG time. This needs to be improved. Especially if you're dealing with kids, coupons, etc. you might forget to remove it in all the other distractions you're up against.

For example, using a debit card. Old way - slide, put back in wallet, then you can answer questions.

New way - Insert chip end of card into reader, wait about 3 seconds... What type of card - credit or debit? Click debit. Wait 3 seconds... Enter PIN... Wait 3 seconds... Do you want cash back? Enter NO.... Wait 3 seconds... Okay, now card reader beeps annoyingly, and says you can remove card.

(Debit cards need a PIN number, credit cards don't. Credit cards need a signature above a certain amount, debit cards don't)

Really? Why can't all the prompts be instantaneous? You don't need 3 seconds between prompts.
 
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I have never seen Apple Pay live in action. What is taking so long? Where I live, contactless terminals are ubiquitous, the infrastructure is highly standardized and you only need to enroll 5 banks to achieve >90% market penetration. Banks are eager to adopt new technologies like Apple Pay. Yet zero movement. Why? Apple doesn't care about countries besides the US or UK I think.

Maybe it takes more than Apple caring, but more if your bank is willing to work with Apple...
 
As has been said above;
Contactless wins in the UK and always will, unless Apple Pay is incentivised.
I have to get my store card out for Tesco/Morrison’s/Sainsbury’s etc anyway, so I may as well take out my credit card also.
 
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