Apple Pay in-store adoption is “growing nicely”

Apple Pay adoption at the point of sale is “growing nicely” and is “in-line with growth among other digital payment players” such as Google and Samsung, long-time Apple analyst Gene Munster reveals. “We believe that users are activating Apple Pay on about 30% of new iPhones,” the analyst, who has moved to Loup Ventures from Piper Jaffray, writes in a research note. “In total, we estimate that 13% of the 680m iPhones in use today have activated Apple Pay.”

  • Willam Hugh Murray, CISSP

    This report suggests that Apple Pay still has a lot of room to go. Because Apple Pay relies upon NFC, it only works on the newest iPhones, 6, 7, and SE.

    And like EMV it is subject to the “chicken and egg” problem; i.e., merchants will not adopt contactless readers until customers adopt contactless devices until merchants are ready to read them. However, adding NFC at the point of sale has proven to be easier, quicker, and cheaper than EMV. In contrast to EMV, slower than mag-stripe, it is faster.

    On the day that Apple Pay was rolled out, only a couple of hundred merchant checkouts were ready to accept it. In the intervening two years that number has grown quickly into the millions.

    Apple Pay is contactless, cardless, and (credit card account) numberless, the ideal of payment systems. It is convenient and secure. It works at point.of sale, online, and “in app.” Because it does not use the credit card account number, it resists most fraud, including the the infamous “card not present.” It, and its competitors (e.g., Android Pay, Samsung Pay) are arguably the future of retail payments.

    Most new mobiles support one, and potentially more than one, of these systems. Consumers will adopt them for the convenience; we will get the security for free.

    All that said, I pay with my Apple Watch.