“We are optimistic about cashless payments generally and, in the past, have been enthusiastic about Apple Pay. However, our sense of Apple Pay is mixed at the moment,” Market View writes for Seeking Alpha. “As we monitor the page of retailers that accept Apple Pay, we are concerned that it’s not adding new merchants quickly enough.”

“Apple management has noted that ‘Apple Pay is growing… with more than five times the transaction volume of a year ago.’ Last month in Apple’s quarterly earnings call, management said that Apple Pay’s ‘estimated monthly active users (were) up more than 450% year on year’ the prior month,” Market View writes. “However, actual metrics are not disclosed and the growth is off a very low base. Services revenue, the category in which Apple Pay is recorded, grew 23% in the first half of fiscal 2016 to 10% of total revenue from 7%, but Apple Pay is just one component of Service revenue.”

“Maybe part of what we perceive as slowness in driving merchant integration is just the early stage of contactless payments in the U.S.,” Market View writes. “In fact, according to Digital Trends, Apple Pay dominates the domestic contactless payments market, accounting for “75 percent of all contactless payments in the U.S.,” but mobile wallets are a niche product at this early point. Domestically, only 0.2% of all in-store sales were paid for using smart devices in 2015, according to research firm eMarketer.”

Read more in the full article here.

MacDailyNews Take: As retailers upgrade their antiquated POS infrastructure, we’re finding – anecdotally – Apple Pay to be more widely available. We’ve paid by Apple Watch more in the last two months than in the previous ten because the capability is now there at more places.

This is a marathon, not a sprint.

SEE ALSO:
The ultimate guide: How and where to use Apple Pay – August 29, 2016
Apple Pay rolls out to all Chick-Fil-A locations – August 17, 2016
Apple Pay and wannabes must offer perks to grow – December 14, 2015
Starbucks, KFC, and Chili’s to accept Apple Pay this year – October 8, 2015
Barclays to bring Apple Pay to the UK in early 2016 – October 7, 2015
Some Best Buy stores are now accepting Apple Pay – September 18, 2015
MCX CEO gone a day after Apple Pay lands Best Buy – April 28, 2015
Best Buy capitulates, to accept Apple Pay despite CurrentC allegiance – April 27, 2015
Major retailers see Apple Pay wave – November 17, 2014
In only 3 weeks, Apple Pay is changing how consumers pay – November 17, 2014
Boycott CVS and Rite Aid – October 27, 2014
Bad business: CVS and Rite Aid antagonize their most well-heeled customers by blocking Apple Pay – October 27, 2014
CVS stores reportedly disabling NFC to shut down Apple Pay – October 25, 2014
iPhone users earn significantly more than those who settle for Android phones – October 8, 2014
Yet more proof that Android is for poor people – June 27, 2014
More proof that Android is for poor people – May 13, 2014
Apple’s iOS dominates in richer countries, Android in poorer regions – March 25, 2014
Twitter heat map shows iPhone use by the affluent, Android by the poor – June 20, 2013