It’s not often that an Apple launch doesn’t grab instant attention in the market. But according to this Bloomberg Business article Apple Pay isn’t exactly taking off as expected. After one year, Apple Pay only accounts for a mere 1% of all retail transactions in the U.S., based on research from Aite Group.
So what’s the holdup? There’s a few reasons cited in the piece, including limited promotion and in-store terminals; and the fact that it’s only available on newer iPhones. But even those with newer phones aren’t exactly buying it. The fact is for the most part, consumers aren’t really sure how it works so are sticking with payment options they know, such as PayPal.
Apple may be off to an unusually slow start, but they’re not alone. Samsung Pay and Google’s Android Pay are suffering the same lukewarm response. But the belief is, stepping up marketing and availability will start things rolling in earnest for mobile payment.
Mobile payments will gain momentum at some point however. According to Aite, growth will be slow for the next three to five years, before it really takes off. There’s also some speculation that the EMV (chip and pin) card rollout in the U.S. could annoy consumers enough to put more serious thought into mobile payment options (people want a faster checkout process at the end of the day). So it’s really not a matter of “if” Apple Pay (and others) will take hold, but “when”.
Have you tried Apple Pay? Tell us your experience with it.
By the CEL-FI Team