Survey: Only 6% of U.S. iPhone Users Who Set Up Apple Pay Actually Use It

[Michael Scrip]

I don’t get how, there’s an extra step with the phone as opposed to just tapping the card. You also have to provide faceID which means taking the phone back off the terminal, unlocking it and putting it back on the terminal.

True... but you need two hands to get the card in the first place... one hand to grab your wallet... and the other hand to grab the card from the wallet.

So it's six of one... half a dozen of the other... if we're counting... I guess...

Even if Apple Pay had the same number of tiny "steps" as using a credit card... are we gonna ignore the tokenization?

The store doesn't get your credit card number. They simply get a random string of numbers.

That, right there, is one big reason to use Apple Pay. Securiteeee!

 

[iMacDragon]

I'll grant with phone the convenience depends on how hard it is to get wallet out vs phone, so other than not needing to carry perhaps It's not absolute clear cut, but with watch, I don't think it's ever easier to get card out if it's option.

 

[Kaikidan]

I mainly used it because getting my phone out of my pocket was easier than rooting around in my wallet. however mask wearing makes that a PITA so I have reverted to using card. I'm in the UK and I can't believe that only 70% of US merchants are set up for contactless...

In my country it's pretty common for the stores to have contactless option, but when you ask for it they take your card from your hand, touch the machine for you, then give the card back. Ins't the point of contactless..... not having contact with staff? specially during pandemic? the clerks in all stores here treat the card machine as a gold nugget, holding tight to it at all times, almost looks like that you gonna take it and run away the moment they loosen the grip on it. almost all smaller stores are like this, luckly the big chains like markets and shopping stores understand the concept of contactless.

 

[ersan191]

i wasn't comparing my other cards to apple card.

So do you just not understand how Apple Pay works then? You add other cards to it and get the same rewards you would if you had physically used the same card.

 

[James_C]

The UK like many other EU countries have had contactless payments for a while before Apple Pay, and as Apple Pay can piggy back off the existing contactless payment system even if the store does not officially support Apple Pay. I have got to the point that I no longer carry cash and rarely have my bank cards with me. I pay for just about everything with Apple Pay on the watch. Click the button twice and wave your watch over the reader and done.

 

[wirefire]

I use apple pay... but I think I can help explain why this number is "low".

I had Apple Pay on day 1 (or pretty close too it). At that time there was one place I could use it. Subway. No local grocery store or any other location could take the contactless payment. In general I found this disappointing but expected no less with a new technology. The fight ensued where a bunch of other mobile wallets wanted to challenge and major retailers wanted their QR code system that was basically a joke out of the gate. That delayed the rollout of Apple Pay further in the US and was really a crap thing because the NFC cards and Apple Pay are basically the same thing so if the NFC cards were going to work... there was no reason why Apple Pay couldn't on these terminals. I grew sort of tired of the slow rollout and arbitrary acceptance at stores, so I basically stopped trying to use it in most cases.

by 2019 I used it for all my grocery purchases as the local grocery stores here finally caught up and they all now accept Apply Pay and did mark their terminals that they accept it. In 2015 the first time I paid with my watch people at the store would ask "what did you do?" They didn't know what an NFC payment was, how it worked, or what I was doing waving my watch at the terminal.

now in 2021, I have the first local gas station I have found that takes Apple Pay at the pump, our local grocery stores all take Apple Pay. Still can't use it at some stores around here but in general the acceptance has improved significantly. It isn't the easiest thing to use for the local drive through at MCDonalds. They ill accept it but it is a pain to have them hand the terminal out the window to wave your phone at it only to have it require your face with is not at the point of transaction which is out your car window..... (you get they picture here, it isn't "easier" than the card... it is more difficult and that is why it doesn't have a bigger uptake.)

so... things that would make it easier. totally ignoring cost.

put a fingerprint reader in the side button that. you need to double click for payments. Face ID is great for most things. but it sucks for window transactions, especially in the COVID era with masks. that needs to be streamlined so it can be as easy as the dunking donuts app with its QR code (yes I complained about the QR code before but the simplicity has its advantages.)

run a program to get those that accept Apple Pay to display their acceptance at the store / payment site.

Have (better) incentives. Plastic debit / credit card usage is a "habit". it is something many people do every day and Apple Pay is attempting to break a habit. in order to do so the benefit must be significant. under standard cases there is no benefit to Apple Pay. Same price for the same cup of coffee so to speak, where is the advantage? The card "just works" , I don't have to ask any questions about acceptance and I pay the same price.

Ifi could carry everything in my apple wallet, and everyone would take it. my wallet would be a gone. but we are talking about drivers licenses, medical cards, car keys, house keys, and near 100% acceptance of Apple Pay. If we were there.... I would be damn happy but that isn't likely in my lifetime (I am 42). That is where they need to get to.

 

[remington79]

Someone talked about signatures for using cards. While there are not many contactless places near me it has been years since I provided a signature with a credit card purchase or when I’ve selected my debit card for as credit. Interesting fact I read that the banks don’t even bother with them on their end so I just scribble a bunch of nonsense the few times it’s needed such as when dining out.

This is why one reason along with personal preference I prefer Touch ID. I have the SE 2020. I just double tap the home button and my thumb is already unlocking it. I never have to raise it to my face. I never have to bring the phone past the reader. And while I love tech I have no desire for an Apple Watch. I prefer my good reliable GShock that I don’t have to charge all the time or worry about breaking.

 

[tmiw]

Someone talked about signatures for using cards. While there are not many contactless places near me it has been years since I provided a signature with a credit card purchase or when I’ve selected my debit card for as credit. Interesting fact I read that the banks don’t even bother with them on their end so I just scribble a bunch of nonsense the few times it’s needed such as when dining out.

This is why one reason along with personal preference I prefer Touch ID. I have the SE 2020. I just double tap the home button and my thumb is already unlocking it. I never have to raise it to my face. I never have to bring the phone past the reader. And while I love tech I have no desire for an Apple Watch. I prefer my good reliable GShock that I don’t have to charge all the time or worry about breaking.

While signature isn't required anymore even when inserting, a lot more places than one would expect still want one in my experience. I suspect it's a combination of not 100% trusting Visa and MC and (at least for places that expect tip) a belief that customers would stiff employees otherwise. I think that a lot of the former is happening for chip enabled gas pumps and their continued insistence on ZIP codes too, but at least they don't usually ask when using NFC.

 

[Hicksmat1976]

so strange - in the UK I use Apple Pay as my primary cashless option. I would say I use it for 95% of payments at a counter etc.

 

[simeonherbert]

So Strange, I see everyone using it in the UK - so much safer

 

[MisterSavage]

Interesting tidbit: ApplePay will often work in a country before local card issuers support it. For example, as early as 2016, I was able to widely use my US-based ApplePay cards in Iceland & France.

I was in Amsterdam a few years ago and was surprised that I got some surprised reactions when I paid for things with my watch. The funniest was when I paid for entry into a restroom while people were digging through their pockets for change.

Apple Pay isn't accepted at Amazon, Walmart, Home Depot, Lowe's, Kroger, HEB just to name a few. In fact some businesses have abandoned AP completely.

Some examples?

While signature isn't required anymore even when inserting, a lot more places than one would expect still want one in my experience. I suspect it's a combination of not 100% trusting Visa and MC and (at least for places that expect tip) a belief that customers would stiff employees otherwise. I think that a lot of the former is happening for chip enabled gas pumps and their continued insistence on ZIP codes too, but at least they don't usually ask when using NFC.

I still encounter the signature requirement also, which is maddening. I've wrote a squiggly line for well over ten years as my "signature".

 

[dk001]

The user who you replied to said that not everyone takes it meaning that there simply aren't contactless terminals out there everywhere. Walmart for instance has resisted heavily. But moreover, I think part of the issue is simply because retailers in the US aren't used to having the credit card terminal out in the open for users to interact with.

Anywhere that accepts contactless cards will also accept Apple Pay in the US. I think when users say they use card, it means EMV or mag swipe still. Contactless cards just never took off in the US. I remember around the 2008 recession or so, many cards started transitioning, but then when it never took off, card issuers started giving non contactless cards again. It took until the whole Target breach in 2013 along with Apple Pay being introduced to bring contactless cards back. Only in the last 2-3 years or so have card issuers gone back to contactless as default and I saw a few cards being replaced to explicitly offer contactless.

As I mentioned earlier, part of the problem is most retailers keep their credit card machines behind the counter and aren't accustomed to holding it up or putting it on the counter in front of the customer. So even if they have contactless support, it's a hassle and they're more used to you handing them your card in the US.

With the pandemic though, I do see more stores prominently putting Square readers out there in front so you can use contactless, so this is a positive change.

I run into more readers that require insert instead of tap. A store, especially curb side pickup, might have tap one day, insert the next.
With this being a “crap shoot”, it’s easier to keep the card handy.

You are right though, the number of tap has risen with the pandemic. Thought there would be more by now.

 

[dk001]

I never stop being surprised by how far behind the USA is in modern banking and payment systems. Heck even in Russia it is used everywhere including tapping in and out of public transport for many many years. The extra security, the increased limits, heck I bought our BMW by Apple Pay tapping my phone

A BMW? Wow.
I have a CC and Debit linked to my Apple Pay. If the card has a transaction or daily limit, it still applies.
Found that out when I went to buy some bedroom furniture last year. Found out my debit had a $5k transaction limit after my Apple Pay was declined.

 

[MisterSavage]

I never stop being surprised by how far behind the USA is in modern banking and payment systems. Heck even in Russia it is used everywhere including tapping in and out of public transport for many many years. The extra security, the increased limits, heck I bought our BMW by Apple Pay tapping my phone

Wow. The last time I bought a car (USA) the dealer would only let me put around $2500 of it on a credit card.

 

[TheSapient]

I don't really find this number surprising, at least for the US with our terribly inconsistent POS options. But beyond that, the change in convenience for most people is not great enough to justify the effort needed to change habits.

It takes me less than 5 seconds to have my credit card out and ready to use. Most of the time, this happens while I'm waiting for something to be rung up, so its not like it take any time out of my day. With the specifics of my life, I'm not anywhere close to being able to go without my wallet. Phone payments are, for me, not worth the hassle of having to worry about whether a given store is going to accept them, even if I could net a few seconds/day on average.

Every time I get a new phone, I set up it up for contactless payment. I try it until I run into a place where it isn't accepted. Then I forget about it. For me, it is an emergency backup if I forget my wallet. There may come a day when it is as reliable as plastic, but that is not today.

 

[jimmysalg]

no, that's not true. if they take contactless they take apple pay. They can however reject cards from certain networks, like American Express or Discover, but those cards are rejected on both Apple Pay and regular cards.

...if you read through this forum you will see other users have had the same experience. As a perfect example my dentist has one of those handheld machines, the screen will say"tap to pay" I tap and it says payment not accepted, then I will take the very same credit card (MasterCard) and insert and works just fine. The lady accepting the payment was also scratching her head because regular tap to pay credit cards worked just fine. I've had this happen at other merchants too! And the cashier would say "oh yea Apple Pay doesnt work".

 

[jimmysalg]

Wow. The last time I bought a car (USA) the dealer would only let me put around $2500 of it on a credit card.

yea, they didn't use to have limits at dealerships but now they do

 

[SactoGuy18]

Fortunately, here in Sacramento, CA most stores now take Apple Pay NFC payments due to most terminals being able to take NFC payments. Even my favorite takeout restaurant now has an Apple Pay compatible point of sale terminal!

The only major holdouts in my area are Home Depot, Lowe's, Walmart and the WinCo supermarkets. Getting Home Depot and Lowe's to support NFC payments could be the thing to break the ice for really widespread usage.

 

[MacAddict1978]

People quickly forget that everyone on this forum is a sliver of Apple users, and we are on these forms because we're tech-know people. The majority of iPhone users are over 34, a huge chunk under 18 (and almost no one in that age group is using Apple pay under 16).

To activate a card on Apple pay, you need to have an online credit card account set up.... then you need to authenticate it with a user name or password.... even technologically literate people don't know the password to the Chase visa account they created 3 years ago and maybe access with an App that uses face ID or a browser with a stored password.

I'm a bit surprised it's only around 6% (thought 10ish %) but not surprised at all its that low.

Every week I still fall prey to people thinking I committed acts of witchcraft when paying with my Apple watch (even cashiers which is disturbing) that have never seen it done before.

 

[MacAddict1978]

...if you read through this forum you will see other users have had the same experience. As a perfect example my dentist has one of those handheld machines, the screen will say"tap to pay" I tap and it says payment not accepted, then I will take the very same credit card (MasterCard) and insert and works just fine. The lady accepting the payment was also scratching her head because regular tap to pay credit cards worked just fine. I've had this happen at other merchants too! And the cashier would say "oh yea Apple Pay doesnt work".

Home Depot, WalMart, and Lowes all have this blocked even though their hardware is capable. WalMart wants people to use thier payment platform (not happening), and Home Depot and Lowes were a few of the companies that were banding together to raise a merchant backed mobile payment system. Target was one of the d-bag retailers in that mix, but wised up. What was that called? It had a bad name and then got changed to something C and was a total train wreck.

 

[SactoGuy18]

Home Depot, WalMart, and Lowes all have this blocked even though their hardware is capable. WalMart wants people to use thier payment platform (not happening), and Home Depot and Lowes were a few of the companies that were banding together to raise a merchant backed mobile payment system. Target was one of the d-bag retailers in that mix, but wised up. What was that called? It had a bad name and then got changed to something C and was a total train wreck.

The system was called Merchant Customer Exchange. Interestingly, Walmart Pay is essentially a subset of MCX (and actually works pretty well from my experience using it).

 

[fischersd]

Fortunately, here in Sacramento, CA most stores now take Apple Pay NFC payments due to most terminals being able to take NFC payments. Even my favorite takeout restaurant now has an Apple Pay compatible point of sale terminal!

The only major holdouts in my area are Home Depot, Lowe's, Walmart and the WinCo supermarkets. Getting Home Depot and Lowe's to support NFC payments could be the thing to break the ice for really widespread usage.

Surprising - all three of those support contactless up here (Home Depot, Lowe's and Walmart).

Walmart took their sweet time supporting contactless (even though their hardware already supported it) they also had their feud with Visa for awhile there - took some time before they accepted that, but no hurdles now.

 

[tmiw]

...if you read through this forum you will see other users have had the same experience. As a perfect example my dentist has one of those handheld machines, the screen will say"tap to pay" I tap and it says payment not accepted, then I will take the very same credit card (MasterCard) and insert and works just fine. The lady accepting the payment was also scratching her head because regular tap to pay credit cards worked just fine. I've had this happen at other merchants too! And the cashier would say "oh yea Apple Pay doesnt work".

I don't deny that there are software bugs that make some forms of contactless work better than others but purposely blocking e.g. Apple Pay is against card network rules for sure.

 

[EdT]

I use Apple Pay quite a bit and when I go to a store or service that doesn’t use it I email the company (if possible) and say I avoid going to places that don’t allow me to use Apple Pay. I don’t remember ever using Apple Pay with my phone but I use it all the time with my Apple Watch. Double click on the side button and hold the watch near the NFC reader and it works -face masks not a problem. It wasn’t the reason why I bought my watch 3 or 4 years ago but it’s something I use multiple times every week.

 

[jseymour]

Seems low. I use it all the time. I wish I could Apple Pay at the pump.

The gas station I use nearby put new pumps in a year of so ago. They all have contact-less payment and Apple Pay works on them. I loved it when I still had Apple Pay.