Check it out: Apple Pay rules

From AppleInsider’s “Apple Pay accounted for 92% of US mobile wallet debit transactions in 2020, study says” posted Tuesday:

Apple Pay dominated the mobile wallet space for debit transactions in 2020, a year of significant sector growth thanks to dramatic changes catalyzed by the COVID-19 pandemic.

Apple’s payments service accounted for 92% of all mobile wallet debit transactions in the U.S. last year, according to Pulse, an electronic funds transfer firm and subsidiary of Discover Financial Services that serves more than 4,400 financial institutions nationwide.

Pulse’s annual 2021 Debit Issuer Study, conducted by Oliver Wyman, shows about two billion mobile wallet debit transactions were conducted in 2020 using either Apple Pay, Samsung Pay or Google Pay. That figure is up 51% year-over-year, with Apple Pay benefitting most to outperform its two major competitors across every metric, the study says.

Compared to Apple Pay’s 92% transaction share, Samsung Pay and Google Pay accounted for 5% and 3% of mobile wallet debit transactions, according to Pulse.

My take: I almost feel sorry for Samsung and Google.

UPDATE: Found Pulse’s bar chart at Patently Apple

apple pay 92 percent

 

19 Comments

  1. I’m thrilled that Apple Pay is working for so many people. It works perhaps 1 out of 3 attempts for me. I’ve experienced the same poor performance since Apple Pay was introduced. I do keep attempting to use it, hoping they’ll resolve whatever issues people like me frequently encounter. There’s always a line behind me and a frowning cashier. Funny thing is, Apple Pay pops up and asks me to approve a sale when I’m in a small boat, driving my car or way out on the end of my dock. Not a cash register/POS terminal in sight and I’m typically not even touching the phone. They eventually fixed AirDrop, a feature I fretted over for years.
    Imagine what results Apple & observers will report when they get Apple Pay to work every time.

    1
    August 17, 2021
    • Fred Stein said:
      Yes Thomas, I’ve found Pay finicky at times, but it gets better all the time.

      That said, the data, above, shows other mobile debit payments declining in use. I’d bet the other are a lot more finicky than Apple Pay.

      1
      August 17, 2021
      • Bart Yee said:
        @Thomas and @Fred
        Hmm, I wonder where the issue lies for your Apple Pay inconsistencies? For me, I use Apple Pay at Costco, Target, most of my favorite restaurants, fast food, and dessert places big and small. Most have up to date Ingenico CMV NFC card readers or Square POS terminals where card tap or Apple Pay is accepted. I have had 99% reliability using Apple Watch as the Apple Pay device and eliminates the need for carrying credit card or wallet or pulling out iPhone for payment. My suspicion is sometimes it’s hard to position the (older?) iPhones precisely where it’s NFC signal is read by older readers. Perhaps that is part of the issue with your retailers? Older readers or outdated software are blamed often, why don’t they get new terminals/reader so there’s less friction to the transaction?

        I always ask if they accept Apple Pay and do make it a point to suggest having Apple Pay available in the future. As you know though, some retailers will not budge and steadfastly deny NFC use affecting all electronic payment systems except perhaps their much lesser system. For example, no stats on Walmart’s Walmart Pay usage.

        0
        August 17, 2021
  2. Jeff Galanti said:
    It is very ironic that Apple Pay is being quickly adopted by tons of retailers now but Apple has been very quiet about it. They used to brag about getting Petco or Panera Bread. I feel like it works at most national chains that I go to now. Covid and the shift to online ordering of food and Target/Walmart type goods were like rocket fuel for its adoption.

    1
    August 17, 2021
  3. Fred Stein said:
    Once again, we see Apple growing at the expense of competitors, just like IB growth in iPhone and unit sales in Macs.

    The big story for 2021: “Apple grows at the expense of competitors in most categories.”

    2
    August 17, 2021
  4. Gregg Thurman said:
    My take: I almost feel sorry for Samsung and Google.

    You’re kidding, right?

    7
    August 17, 2021
  5. Jerry Doyle said:
    I am fortunate in that from its inception and from my initial purchase of the Watch in the spring of 2015 when I started using Apple Pay, I never once on my Watch had a problem. In fact, once sitting in the restaurant eating, my Watch’s notification showed that I just made a real time AMEX purchase that “I did not make.” I quickly alerted AMEX representative who immediately contacted the vendor while the person who used my AMEX data to consummate the purchase still was present. AMEX voided the purchase and reissued me a new card.

    What I would like to know is information on the use of the Apple Card as payment of choice. Apple makes more profit if the Apple Card is used than if I use AMEX or some other credit card company. Do we have data on the usage of the Apple credit card as payment of choice and where the use of the Apple credit card compares percentage wise with other bank credit cards; or am I wrong completely since the Apple credit card is a MC under the auspices of GS? It’s still a little confusing to me, but the payment process has been 100% successful. I am disappointed that HD, Kroger’s and yesterday Wendy’s do not use Apple Pay. Often times I leave home without my credit cards and find myself only with my Watch to use for payment. I carry no cash. I long for the day when we become a cashless society.

    2
    August 17, 2021
  6. Gregg Thurman said:
    am I wrong completely since the Apple credit card is a MC under the auspices of GS?

    In a word, yes. Apple’s relationship with MC is that of a customer using the MC network (backbone if you will) to facilitate AppleCard and Apple Pay transactions.

    It is because of that relationship that I have been advocating that Apple buy MC. Apple could do so with the cash it uses to buy 2 quarters worth of its stock. Converting all those MC holders to AppleCard instantly become the second largest cc company (at least in North America). Instead of paying to use MC’s network, Apple would own it, and all those MC holders.

    Overnight Apple Pay would be universally available worldwide (at least wherever MC was accepted).

    2
    August 17, 2021
    • Andrew Osborn said:
      Re: “It is because of that relationship that I have been advocating that Apple buy MC. Apple could do so with the cash it uses to buy 2 quarters worth of its stock.”

      Gregg, I always appreciate your smart insights, but here (I believe) you have your numbers wrong. Apple has been buying as much as $29B of its stock back in recent quarters, so two quarters worth would be less than $60B. MasterCard’s market cap is nearly $360B! MasterCard is MA, not MC.

      0
      August 17, 2021
  7. Greg Lippert said:
    Never had an issue with ApplePay, if I had any trouble it was the termainals and the vendor. But thats few and far between.

    My one big complaint is Home Depot does not accept ApplePay, although they did when it first launched and then they shut it off.

    It’s the main vendor where I have to remember to bring my card and its frustrating since I rarely carry a physical card these days.

    3
    August 17, 2021
    • Bart Yee said:
      Yep, here’s a 2020 list of some major US retailers who still refuse to activate NFC based electronic payments and specifically Apple Pay. Note, most were members of the ill-fated MCX Merchant Exchange consortium that tried to develop their own complicated electronic debit system tied directly to taking your money from your checking account, collecting and sharing your purchase data with each other, safely guard your CC and personal info (fat chance), and trying to avoid the transaction fees. Typical!

      Walmart (You can use Walmart Pay)
      Kroger (You can use Kroger Pay)
      Dick’s Sporting Goods
      Home Depot
      Kmart
      Lowe’s
      Sam’s Club

      0
      August 17, 2021
  8. Phil Service said:
    Perhaps someone can enlighten me: is this data only for debit cards? Credit cards can also be used in Apple Pay.
    What needs an explanation, I think, is the difference in enrollment rates.
    I’ve had almost no problems with Apple Pay. Mostly I use it in grocery store check out lines.

    0
    August 17, 2021
    • Bart Yee said:
      Yes, this data is debit card use via Apple Pay. I reviewed a report from PYMENTS.com which said the major online intermediary payment system is PayPal followed by Apple Pay. This is not surprising given PayPal has been around since 1998, achieved huge user numbers with eBay, and has expanded partnerships with many retailers and websites. But considering Apple Pay has only been around for 7 years, it’s quite an advance. One area where Apple Pay leads is the fact that affluent users prefer Apple Pay to PayPal.

      0
      August 18, 2021
  9. Arthur Cheng said:
    Ironically the US is way behind in this. Apple Pay is literally accepted everywhere in Singapore and HK. I have not been able to check out the rest of the locations because of COVID travel restrictions.

    1
    August 17, 2021
  10. Rodney Avilla said:
    I find Apple Pay working around 98-99% of the time. Yesterday at Walgreens, my watch wouldn’t connect, but my phone did right away. I love it. I still get comments (wow, that’s cool, I didn’t know watches did that) all the time. The merchant does not get my credit card number. Lowes, Home Depot, Target, etc., all want you to use their card. For example, Target accepts Apple pay, but you cannot add the Target card (5% off) to the wallet. To use Apple Pay at Target, I have to use a different credit card (1-2% off).
    Couple years back, at a McDonalds, where the cashier told me the APay was not working. I tapped my phone on the pad and ping! She responded, “So that’s how that works”.

    1
    August 17, 2021
  11. Gregg Thurman said:
    My only issue with AppleCard is the inability to use it online or auto-pay. There are no numbers associated with it that can be used online or with auto-pay.

    I pay my AppleCard bill, in full, every month. The money-back I’m losing after about a year will pay for my next iPhone (after trade-in).

    0
    August 17, 2021
    • John Konopka said:
      I don’t think that is correct. I use my Apple Card online all the time. Either I select ApplePay if it is available on the website or I put in the actual card number.

      From the wallet choose your Apple Card then tap the … at upper right then select Card Information. You will get verified by FaceID or by typing in your passcode then you can see the card number, expiration date and CSV number.

      From the same location you can text or call about a credit card transaction. They are very responsive.

      I have this added to Safari so I just click in the CC field and it pops up. Way too easy to buy stuff.

      I’m with you. I pay in full each month.

      I’m surprised that Apple Pay has become so dominant. On the surface it seems non-obvious why it would account for over 90% of transactions. Clearly Apple engineers have patiently figured out how to reduce any friction from using this.

      1
      August 17, 2021
  12. David Drinkwater said:
    Follow the money. People who are willing to shell out for Apple products are willing to spend money. Q.E.D.

    0
    August 17, 2021

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