“Nancy Schrum watched curiously as a colleague from her law firm waved an iPhone above a credit-card reader to buy a Subway sandwich with Apple Pay earlier this year,” Tripp Mickle reports for Dow Jones Newswires. “‘I have that, but I’m afraid to use it,’ said Ms. Schrum, who feared the technology wouldn’t work.”

“When Apple Inc. launched its mobile-payment service more than two years ago, it hoped to speed up the checkout process and, ultimately, to replace physical wallets for U.S. consumers,” Mickle reports. “Apple Pay has made significant headway, but Ms. Schrum’s wariness reflects a range of factors that analysts say have caused growth to undershoot their expectations, including security concerns about the service, retailers that don’t accept it, and Apple’s relatively paltry marketing.”

“The pace of Apple Pay adoption has been ‘disappointing even to conservative expectations,’ said Gene Munster, managing partner at Loup Ventures, a venture-capital firm specializing in tech research,” Mickle reports. “Just 13% of the estimated 680 million iPhone users have used Apple Pay, according to the research firm.”

“Eddy Cue, Apple senior vice president in charge of internet software and services, said the service has been adopted faster than other payment systems and he believes it will eventually replace cash, debit and credit cards as the primary payment system,” Mickle reports. “‘Does it matter if we get there in two years, three years [or] five years?’ Mr. Cue said in an interview. ‘Ultimately, no.'”

Read more in the full article here.

Eddy Cue

Eddy Cue

MacDailyNews Take: Eddy Cue. Always driving hard.

Just the type of A+ player Steve loved. Steve would be so proud.

And give Apple a break. How’s a company sitting on only $250 billion supposed to be able to properly market a new service?

As we’ve written many times, as recently as February: “There is no better way to pay than with Apple Watch and Apple Pay. Two simple things could turbocharge Apple Pay usage: Better (or actual) signage at the point of sale and incentives for using Apple Pay. Imagine Apple Pay usage if Apple simply offered $1 to spend at the Apple Store for every hundred spent via Apple Pay.”

But, of course, signs cost money and simple incentives require upper level executives to have a smidgen of imagination and foresight.

As we wrote last August, imagine at the special media event to introduce the next-gen iPhone, Apple CEO Tim Cook said something like this:

And, of course, the new iPhone works with Apple Pay and, starting today, for every $100 you spend using Apple Pay, you get $1 off at Apple retail and online stores. So, spend $100 on groceries using Apple Pay, you get $1. Spend $300 on a plane ticket using the Delta app, you get $3. Use Apple Pay in your ExxonMobil Speedpass+ app to buy your gas. It all adds up! By the end of the year, you’ll likely have quite a discount on your next iPad, Mac, or iPhone!

Would you use Apple Pay more if Tim Cook said something like that? We know we certainly would. So would tens of millions more people than are using Apple Pay today.

As we wrote nearly two years ago in August 2015:

Apple, give us a reason to use Apple Pay beyond looking like tech dorks in front of the line at the register. What’s the incentive to use Apple Pay? There is none besides looking like a flaming nerd. As if Apple doesn’t have any money. That, inexplicably, is how they approach Apple Pay. Hello, Tim? Eddy? Talk to some people who actually go to stores and shop for things, please.

Incentivize its use! Give Apple Pay users a percentage of every dollar spent via Apple Pay to spend at Apple Stores. Something. Anything! Get people used to using it first. Sheesh. It’s really not that difficult. It really isn’t.

SEE ALSO:
Retail survey: Apple Pay now being accepted at more retailers than any other mobile payments service – February 22, 2017
Apple Pay transactions are growing at a rapid rate – November 30, 2016
Apple Pay messaging at point-of-sale drives 135% increase in mobile payments usage – November 21, 2016
Apple Pay at two years: Not much to celebrate – yet – October 20, 2016
What’s wrong with Apple Pay? – August 5, 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