USA Technologies, Inc., a payment technology provider of cashless and mobile transactions in self-serve retail, today announced the results of a six-month study testing targeted point-of-sale advertising of Apple Pay, which is transforming mobile payments with an easy, secure and private way to pay that’s fast and convenient. Based on the results showing a steady upward trajectory in mobile payment usage, USAT concluded that smartphone users shown digital advertising at point-of-sale through the ePort Interactive platform are more apt to pull out their iPhone to make a purchase, and even spend more.
Findings by USAT after 24 weeks show targeted, digital advertising on USAT’s ePort Interactive platform that highlight Apple Pay availability at point-of-sale resulted in a:
• 36.5% increase in overall sales
• 44.6% increase in total transactions
• 6% increase in total contactless average ticket; 18% at week 20*
• 55.5% increase in revenue through contactless purchases, including Apple Pay; 121% at week 20*
• 135.2% increase in overall mobile payment usage
*Weeks 21-24 historically represent a seasonal dip in visits to vending machines overall.
The study’s results suggest targeted advertising can help boost mobile wallet use. The study found that the number of NFC or contactless mobile wallet transactions increased by an astounding 135.2 percent on machines with targeted messaging.
“Based on our study, we believe that when businesses and operators present consumers with the option to pay for items with Apple Pay, the number of mobile payments made and the amount spent, increases,” said Maeve McKenna Duska, senior vice president of marketing and sales, USA Technologies, in a statement. “The data from this study suggest that call-to-action messages underscoring speed, convenience and security of Apple Pay can act as an electronic gateway for consumers to learn about and use the mobile wallets already installed on their phones. Further, unattended markets are continuing to drive Apple Pay usage as it offers consumers a simple and convenient way to pay without cash or a credit card.”
The results of the study are clear: When consumers are asked to pay with their phones, they do. But they’re also more likely to make a purchase that they otherwise might not, regardless of how they ultimately pay for their items.
Furthermore, the numbers provide evidence that negative seasonality trends may be tempered, and even reversed, by telling consumers they have an option to pay with Apple Pay.
About the Study:
The study measured the impact of targeted digital advertising screens on consumers’ use of mobile wallets – primarily Apple Pay – across 35 vending machines located in New York and Louisiana over a six-month period from March to August, 2016. Machines were outfitted with USAT’s proprietary ePort Interactive displays, which process magnetic stripe credit and debit cards, as well as mobile wallet payments. The displays were programmed with an image of an iPhone and a call for consumers to “Pay with your favorite card using Apple Pay.”
The 130 devices in the control group, on the other hand, simply displayed “Ready – Swipe or Tap Now” above the Apple Pay and other contactless payment services logos.
MacDailyNews Take: Image is everything.
Smart retailers promote Apple Pay.
SEE ALSO:
Apple Pay at two years: Not much to celebrate – yet – October 20, 2016
Apple Pay’s frequency of usage is putrid – August 3, 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
Another reason not to use Apple Pay.
It’s too easy to use a CC or Apple pay. When you are spending real money, you can see it and it’s more painful to see the money slip out of your hands.
With Apple Pay or CC, it’s as if it’s not real so you end up spending more than you can afford and get deeper in debt, because it’ so easy.
Use real cash as much as you can. You spend less that way. Forget Apple Pay. It’s just another form of poison to make you poor.
Or, you can use Apple Pay with a checking card that accesses the money from your checking account, so you don’t have to carry around cash.
Or you could barter, and just swap a chicken or a bag of turnips you grew. That new fangled paper money is not to be trusted.
That’s really sad, if it actually works on anyone. I hadn’t used cash for anything, other than farmers’ market once a week, in over 15 years. There is absolutely no way a reasonably intelligent person will treat payments differently depending on whether they are cash or something else. There are far too many advantages for using cashless payments over cash for me to even consider paying for anything in cash. At any given time, I have no more than about $50 on my person, and that usually doesn’t change much for weeks.
The financially immature who have poor impulse control should not use credit cards or Apple Pay. They have no inner sense of how much money they have or whether or not they have the resources to impulse buy. The financially immature are likely to suffer from immediate gratification syndrome (IGS) and have not developed delayed gratification abilities.
ApplePay on AppleWatch is as sweet as anything gets… love it !
For me, as well. Typically, standing in a checkout line is an exercise in annoyance: those ahead of me fumble with their antiquated methods of payment, slowing down time itself. Now that I have learnt Apple Pay, I pride myself on departing the queue as efficiently as Mary Poppins, never drawing glares of impatience from those behind me. (To the same end, I also ensure that bar codes or price stickers are present on all of my items, to forestall the dreaded call of “price check”, incurring another infuriating delay.) Apple Pay is social refreshment at its finest.
In the US, since the chip card enabled at most merchants, Apple pay is no more faster now than a chip card. It used to work without having to put a pin or signature, now most places require that, so the reality is it is just another normal form of payment an the joy and speed that were there once, is gone.