Saturday 3 December 2016 | RSS

 
    Feedback
     
     

    Survey reports on use of Apple Pay, Android Pay and Samsung Pay in the US

    More than a quarter of US consumers (27%) with an eligible smartphone have used Apple Pay, Android Pay or Samsung Pay, according to research released by Auriemma Consulting Group (ACG). 39% say they would use mobile payments more if more stores and apps accepted it, while 61% say that they are now replacing cash transactions with mobile payments.

    ACG“On average, users report that 17% of their discretionary spending was done with mobile pay,” the firm says. “Even when they find a store that accepts mobile pay, only one third of US mobile pay users (31%) pay that way every time they know it is accepted, most frequently citing that they simply forgot.”

    “It’s important to remember that less than half the smartphones that US consumers carry are capable of mobile payments,” says Marianne Berry, managing director of ACG’s Payment Insights practice. “Reaching for the phone instead of the wallet isn’t an automatic reflex, even for mobile pay enthusiasts.

    “Overall, satisfaction with mobile payments is quite high at 80%, despite complaints about low merchant penetration and inconsistent customer experience at point of sale. Mobile payment has yet to reach the tipping point that will take it from novelty to norm.”

    The research surveyed 2,004 US consumers with an Apple Pay, Android Pay or Samsung Pay eligible smartphone.

    • Apple Pay? Who cares anyway? Not even the Apple faithful, apparently; in the US, only ~5% of those Apple users that have had the opportunity to use Apple Pay, have done so; and on the latest Black Friday, the number was down to 2.7%; the figure is even less currently for payments via all Android OS phones (including the clunky PayPal Mobile).

      In Australia and Canada the retail banks, apparently, aren’t interested in paying Apple a fee to allow Apple to better promote the sale of its new iPhones on the back of the banks’ existing payments systems; any payment, if there is to be one, should be going the other way. Worldwide, Apple’s iOS represents only ~14% of the smartphone market compared to Android’s ~83%.

      The reality is, Apple needs the retail banks to monitize Apple Pay; the banks don’t need Apple or Apple Pay …

      Apple Pay—a proprietary solution to a payments problem that does not exist …

      • Willam Hugh Murray, CISSP

        Perhaps. Apple Pay enjoys a dramatic advantage in both security and convenience over (contact) EMV. The more EMV cards I carry and the more merchants that support it, the better I like Apple Pay.

        While only one of my five grocery stores accepted Apple Pay early, all do now. In the meantime, I avoided the ones that supported EMV but not NFC.

      • Willam Hugh Murray, CISSP

        “Apple Pay—a proprietary solution to a payments problem that does not exist …”

        First, magnetic stripe technology is broken and is not going away. It is insecure for both consumer an merchant. EMV is a day late and a dollar short. While somewhat more secure for the consumer but far less convenient. It does little for the merchant as long he must also accept credit card numbers in the clear on magnetic stripe. I call that a “problem.”

        Second, the study was not specific to Apple Pay. It included Samsung Pay and Android Pay. The solution to the “problem” is cardless, contactless, and (credit card account) numberless. The study included examples of this strategy. While all the examples are somewhat “proprietary,” the solution is inclusive.

        • “First, magnetic stripe technology is broken and is not going away.”

          If you had any understanding of the terms of the V/MA agreement entered into via the merchant-account issuing banks, you would understand that MST is indeed “going away” because once an MST card is reissued as EMV the responsibility for any fraud on an EMV card “swiped” on an MST terminal falls onto the merchant that has not upgraded his terminal to EMV. Further, on an non-NFC EMV terminal, an EMV card must be “inserted”; it cannot simply be “swiped” on an EMV terminal unless the terminal senses that there is a problem with the chip thereon.

          “EMV is a day late and a dollar short. ”

          Nonsense. “a dollar short”? EMV has been unbiquitous outside of the U.S. for some ten years or so now and NFC also for quite some years; only in the U.S. is the Stone Age MST still generally in use.

          “While somewhat more secure for the consumer but far less convenient.”?

          More nonsense; NFC enables “contactless” EMV transactions (in Australia) up to $100; 99% of retail transactions are under $100; therefore a contactless EMV card transaction is just as easy as a mobile transaction and requires no battery.

          “It does little for the merchant as long he must also accept credit card numbers in the clear on magnetic stripe. I call that a “problem.””

          I have no idea what story that statement is supposed to convey …

          “The solution to the “problem” is cardless, contactless, and (credit card account) numberless.”

          See above. And you think that an EMV/NFC card transaction requires a visible credit account number?

          Apple Pay is “proprietary” in that it runs only on an iPhone and Apple demands a fee for its use …

          And, try “swipping” your iPhone on a MST terminal—LOL

          • Willam Hugh Murray, CISSP

            How patronizing. Here Ineas thinking we were discussing technology.

            • And that is your response to my facts? Obviously, you’re an Apple fanboy; the question then is, where did you buy your CISSP certificate, at a dollar store?

    More headlines...