“We completed our annual Apple Pay review and found year over year growth has been impressive with active users more than doubling (source: Apple), transactions more than tripling (source: Apple) and online merchant adoption increasing by ~50% (source: Loup Ventures),” Gene Munster writes for Loup Ventures. “That said, we believe only 16% of global iPhone users have turned on Apple Pay.”

“We checked the Top 100 retailers in the U.S. for Apple Pay compatibility for online (desktop, mobile and apps) and found the growth of adoption has been high (9 to 85%), but off of a small base. The total number of these retailers supporting Apple Pay online now ranges between 14-24%,” Munster writes. “The number of banks globally that support Apple Pay increased in the past year by 41% to 2707 banks. We believe there are 127m global active Apple Pay users, up from 62m a year ago. This represents 16% of the active iPhone base.”

“International accounts for 11%, and U.S. for 5%. Said another way, 89m people use Apple Pay globally, 38m in the US,” Munster writes. “Between 20 and 30% of U.S. iPhone owners use Apple Pay. ~30% of new iPhones are activating Apple Pay. There are 795m active iPhones worldwide.”

Read more in the full article – recommendedhere.

MacDailyNews Take: Slowly, but surely. It takes time to change ingrained habits. We use Apple Pay whenever possible, and have since its inception, but we understand we’re in the small minority. Still, whenever we pay with Apple Pay (which is almost daily at this point), there’s invariably somebody in line who shows interest that we just paid with our Apple Watch. As more Apple Watches show up on wrists, we believe Apple Pay usage will increase as it’s the easiest way to pay via Apple Pay. Plus, Apple Pay Cash just debuted last December, so more time in the market is required for people to get up to speed with contactless payments vs. the old methods of paying with credit/debit cards and/or cash.

We agree with Munster’s take: “We remain optimistic that Apple Pay will gain widespread adoption over the next 3-5 years given integration OS and iOS makes it the easiest to use digital wallet.”

SEE ALSO:
Apple Pay now accepted in 50 percent of U.S. stores and is the world’s most accepted contactless payment system – January 31, 2018
watchOS 4.2 delivers Apple Pay Cash to Apple Watch – December 5, 2017
Apple Pay now in 20 countries, takes 90% of all contactless payments where active – October 24, 2017
Apple Pay is proliferating, and the banks are scared – October 18, 2017
Apple Pay likely to get boost from Visa and Mastercard mandating contactless payment terminals – August 21, 2017
Apple Pay usage estimated to rise sharply in United States due to frustration with slow Chip-and-PIN cards – August 21, 2017

[Thanks to MacDailyNews Reader “Fred Mertz” for the heads up.]