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

[tekcor]

I'd like to use it more, but habits die hard and it's not 100% reliable. I've had Apple Pay decline a charge, but approve the exact same physical card. Many times I'll already have my wallet out before I'll learn that a location accepts it, but since I already have my wallet out, I might as well just continue with what I was doing. There's also those registers where the cashier has to press a button to activate the terminal, and it's far less obvious to them that I want to pay with my watch. If I take my card out, they know, and they press the button. If I use my watch, I have to make some sort of weird gesture and hope they know that it's even an option.

Apple Pay is technologically easier in every way, but socially it's much more awkward.

 

[simplyHuman]

I find it hard to understand why the figure is so low. I’ve been using Apple Pay weekly (at least) since it launched on my Irish bank in 2017. Works at most locations.

They forgot to use your statistics. lol

 

[Marli]

Only six percent of iPhone users in the United States who have Apple Pay set up actually use the feature, according to a detailed study by PYMNTS.

Seven years after Apple Pay launched in September 2014, 93.9 percent of consumers with Apple Pay activated on their iPhone do not use it to pay for in-store purchases, meaning that only 6.1 percent do.

In 2015, the year following Apple Pay's launch, PYMNTS found that Apple Pay usage was just 5.1 percent among those that had the feature activated. This means that Apple Pay usage has only increased by one percentage point in six years.

The growth of Apple Pay in this time may be attributed to more contactless terminals in stores and more users having iPhone models with an NFC coil to facilitate Apple Pay, rather than increased usage. Since 2015, the total amount of Apple Pay transactions at U.S. retail stores has increased from an estimated $5 billion to $90 billion this year.

In 2015, 19 percent of U.S. merchants were able to accept contactless payments, but in 2021, this rose to 70 percent. Likewise, in 2015, only 36 percent of consumers had an iPhone that offered Apple Pay, but now 96 percent of users have access to the feature. Apple Pay support from banks has also ballooned. This has all led to the number of Apple Pay transactions growing overall, but it is still unused by the vast majority of those that have the feature enabled.

The main reason behind the lack of usage may be attributed to the continued dominance of plastic cards. In addition, in the time since Apple Pay's launch, banks have issued an increasing number of contactless debit and credit cards, which most users have preferred to Apple Pay. According to PYMNTS, Apple has struggled to persuade users that Apple Pay is valuable enough to replace the more familiar plastic card, which does not require additional button presses and authentication steps such as Touch ID or Face ID.

"But to be successful, innovation must solve a problem, fix a source of friction or improve an experience that is so painful that consumers or businesses are motivated to switch," the report explained. The study suggested two options for Apple to bolster Apple Pay usage:

Nevertheless, of the various mobile wallets, such as Samsung Pay, Google Pay, and PayPal, Apple Pay has generally been the most popular with a 45.5 percent share of mobile wallet users in 2021.

PYMNTS's findings are based on a study of 3,671 respondents in the United States between August 3 and August 10, 2021 and identical studies from previous years.

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

 

[SSDGUY]

The whole thing feels very "out of control" at least in my experience. I set it up to make payments for a 0% deal I got on a new iPhone, connecting to my debit card as the payment source. Then later I used that same debit card (my only one) to pay for some take-out food via an online ordering website (NOT using ApplePay) and then I noticed that restaurant order was now part of my ApplePay balance. Strange and a disconcerting. I still have not no idea why this happened, and figuring it out using the ApplePay app proved fruitless.

 

[zorinlynx]

That explains why just about every time I try to use it, the cashier seems really confused about what they need to do. A lot of fast food places actually support it, but when I go to hang my wrist about the car window and say Apple Pay, please they just don't know what to do. I tell them to pick up the scanner/reader there and hang it out the window and I tap and they seem really confused.

I bet it only takes one negative interaction like this for most regular people to never try using Apple Pay again.

We are technologists here (most of us anyway) and like to use tech for tech's sake. Most people just want to pay and get on with their day, and will use the most frictionless way possible.

I remember early on when Apple Pay came out, holding my phone to a terminal which had the damn contactless logo on it where it worked the prior week. I think it was CVS.

"Oh, we don't take Apple Pay."
"But it worked last week!"
"They turned it off, sorry."

That experience is enough for most people to never try it again. It's embarrassing and wastes time.

 

[huffy15]

Call me stupid, but I learned last month that I was able to use apple pay pretty much everywhere PayPass is available. I was never using it thinking I needed to see the apple pay logo on the terminal. Since then I'm using it all the time to pay. I travel in Eastern Europe all the time. I never thought it'd work 😂

It's not clear in my opinion that you can use your phone to pay. My friends who are living in Canada learned about it last month as well when I told them

 

[steevn]

I'm in the UK and I can't believe that only 70% of US merchants are set up for contactless...

Im from/live in a major city in the U.S. and I can’t believe that it’s at 70% here, I assumed it was somewhere around 40%. America has always been way behind in the contactless game.

 

[simplyHuman]

i keep saying this: a LOT of places still don't have apple pay, even in big cities like new york or miami.

I am nit sure about your statement, I have used 100s of place in Manhattan and even now you can tap on your watch or iPhone to ride on Path and Subway.

 

[Marli]

Thats all I use here. Contactless payment has been the default for years here. Years before apple pay. I travel to the US a lot, and I am surprised how behind the US is when it comes to payment systems and technology.

Im not surprised its low over there in the US. But the quoted number is very low..

 

[mikethemartian]

The only reason I would use Apple Pay is if it would help me manage my finances by exporting digital receipts into a program like Banktivity. It only takes me a few seconds to use a credit card.

 

[SDJim]

i get better rewards on my other cards for specific purposes.

Sooooo add those cards to Apple Pay?

 

[RemedyRabbit]

Why has the US been so much slower to adopt contactless payment than other western countries? Is it a trust thing?

I haven't used my card to pay for anything in a shop for years now (UK). Hardly carry my wallet anymore either since the pandemic put everyone off using cash.

 

[dba415]

Why would I use Apple Pay which forces me to take off my mask? Maybe if Apple did something useful like bring back fingerprint scanner, Apple Pay would be used more often.

 

[StevieD100]

I use it through the Shell app. Uses geolocation to find the station you're at, you enter the pump number, and then Apple Pay. Never have to touch or tap the pump terminal.

I use it when charging my EV. Many chargers are accepting contactless here in the UK now.

 

[enigmatut]

Count me as part of the 6%. During the pandemic I got out of the habit of having my wallet in my pocket (cuz, ya know, my pocket was sweatpants and I never left the house).
Now Apple Pay has saved me a dozen+ times when walking into a store without a wallet.

Convenience majorly upgraded with Apple Watch: no need for FaceID, and phone stays in the pocket.

Annoyance: echoing some other comments here, it seems many cashiers are mystified by contactless payments, and from what I can tell nearly every point of sale system requires an extra button press to be “ready” for NFC payments, so now I’m in the idiotic habit of making a huge show of tapping my watch and saying “oh hey, Ima ding ding this and it’s not lit up yet, sooooooo…..?” and then they’re either confused for a sec or annoyed for a sec before the magical “get yo ass ready for some NFC!” button is pressed.

What a time to be alive 😁

 

[schneeland]

Not too surprising for me. Contactless payment with my debit card (EC card) is way quicker than pulling out the iPhone. It might be easier when you also own an Apple Watch, but currently I don't see too much use for it.
The only way that would change is if, at some point, I don't need to bring my wallet when I go shopping or eat out, but that seems unlikely (ID card, driver's license, insurance card, etc. would all have to move to the phone for that).

 

[japasneezemonk]

I live out in the middle of nowhere right now and a few places still don’t take Apple Pay here. I use it on my watch and phone when possible but there are some big holdouts. Walmart is the biggest that comes to mind.

 

[ProfessionalFan]

I use it a few times a year. It’s nice but most of the places I shop at don’t use it.

 

[nikhsub1]

I don't get it. Apple Pay is way more convenient than paying with a plastic card.

This. Plus, I'd love not to have to tote my wallet around with me at all - cash in pocket, cards on phone, done.

 

[simplyHuman]

FaceID sucks when you are wearing a mask. Guess where people wear masks? At the store where they make payments.

A, If you are wearing a Apple Watch, you iPhone will open, but will not work for Apple Pay, so when you double click to pay with mask on your beautiful face, Guess what, it will know that you are wearing a mask and will prompt you to enter your passcode, Simple.

 

[alexandr]

I am nit sure about your statement, I have used 100s of place in Manhattan and even now you can tap on your watch or iPhone to ride on Path and Subway.

i am quite sure about my statement, although a lot of places do accept apple pay — not when you compare it to europe. and yes — the mta finally did roll this out, years after many large european cities.

 

[TheralSadurns]

lol. This surprises me.
I was super jelly when Apple Pay WASN'T offered in my country initially... and it took like 3 or 4 years, but since then I literally ONLY use Apple Pay. I don't even take my wallet with me, or cards...
When I know a specific shop doesn't accept Apple Pay (there are a few select ones still around that I don't frequent though) it's always such a nuisance.

 

[plinktog]

In the month and a half we have had Apple Pay as an extra option on checkout in our store (ie. not upstream on product pages or cart), it has processed 6.5% by value of all transactions, and average transaction size is 27% below the overall average. This was a big surprise. Maybe people think the contactless limit applies. 🤷‍♂️

Our customers are about 2/3 iPhone or Mac users.

 

[enigmatut]

Why would I use Apple Pay which forces me to take off my mask? Maybe if Apple did something useful like bring back fingerprint scanner, Apple Pay would be used more often.

Agreed this is not ideal. If there’s any chance you’re interested in an Apple Watch (or already have one), use that instead. Supes convenient and no FaceID required.

 

[Deej]

I don't understand this stat. I use Apple Pay all the time, and I see lots of other people here that do too. Something's not right with the analysis in my view....