Note to CVS, Rite-Aid, Walmart: Apple Pay users spend big

“Apple seems to have nailed it with Apple Pay, its users are already three times more likely to spend $250 or more than are those on other services, the latest Retale survey claims,” Jonny Evans writes for Computerworld. “Apple Pay users are more worried about losing their iPhone than data breaches (29 percent versus 26 percent), suggesting they feel secure with the system. Over one million credit cards were activated on Apple Pay within the first 72-hours of introduction while around 5 percent of US retailers already accept it.”

“PayPal is the most popular in-store mobile pay option (51 percent) with payment systems from banks as the second choice (21 percent). Apple Pay is already the choice of 10 percent of those surveyed, while, despite Android’s dominant market share and three years of availability, Google Wallet is used by a pathetic 8 percent, Retale reveals,” Evans writes. “This sense of security means that while just 12 percent of the Retale survey group said they would be comfortable using mobile pay for a purchase over $250, iPhone users were three times more comfortable with this kind of spending.

“The sense of security is driving use. Over 50 percent of in-store payments made at McDonalds burger joints were made with Apple Pay while Whole Foods processed over 150,000 Apple Pay transaction in the first three weeks of the service,” Evans writes. “Walgreens mobile payments have doubled.”

Read more in the full article here.

MacDailyNews Take: Boycott CVS and Rite Aid and any other company that willfully turns off NFC in a effort to block the vastly more secure, much more private, and far easier-to-use Apple Pay service.

Related articles:
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
iPhone users smarter, richer than Android phone users – August 16, 2011
Yankee Group: Apple iPhone owners shop more, buy more, remain more loyal vs. other device users – July 20, 2010

17 Comments

  1. I just went to CVS pretended to buy my dermatology cream medicine which is 125.00, when the pharmacist rang me up at the register I pulled my iPhone out and asked if they accepted apple pay. He said no, I said, oh ok, then I’ll have Walgreens call you to transfer my prescription. He laughed, I laughed harder.

    1. Even better, use your local independent pharmacist. We care and do everything we can to treat you like real people.

      WHO is your pharmacist? Do they know YOU?

      Try it, you might just LOVE it.

      PS. Big chains are like huge vacuum cleaners sucking all the money out of your town.

      1. I agree with you. My local pharmacy fills my script while I wait, and makes me feel welcome. When I go to the big chains, they make me feel like I’m bothering them, and it’s always come back in a 5 hours.

    1. Actually that makes sense. A lot of people have PayPal accounts, but not many want to carry around another dongle or whatever the banks want you to carry to use their NFC system. Most people are sick of having those little shopper cards on their keychain, instead using a phone number or other number to punch into the payment terminal.

      But that doesn’t mean that PayPal gets a lot of mobile payments. I suspect the number is fairly low, and that Pay will zoom past PayPal very shortly.

    2. I have seen people using Paypal-badged debit cards and gift cards innumerable times in stores. I don’t think Visa and MC and Amex have anything to worry about, but some people like having a “loadable” card that draws from their PayPal account or bank.

      1. The nice thing about my PayPal business debit card is that it first takes from my PayPal balance, if any, and then automatically debits my checking account. Plus, I get 1.5% back on everything. I can’t wait for them to go with Apple Pay.

  2. The assumption seems to be that the customer that wanted to use Apple Pay didn’t complete the purchase using any other payment method. I wonder how many customers simply walked out as opposed to those that simply completed the purchase using cash/credit/debit?

  3. My letter that I sent to Rite Aid recently. –

    “I am a long time Rite-Aid Gold Club member (ID 714xxxxxxx) that also spends thousands of dollars on our (family of 6) prescriptions needs at your store on Valley View in Garden Grove CA.
    I’ve been happy there and your employees have gone out of their way to be helpful and friendly.

    Your decision to deliberately turn off a working Apple Pay system to . . . I’m not sure why you did that.
    Was it to force us to use a less secure CurrentC system that now has a PR black eye that it will not recover from?
    To collect data from us? You already do that with our Rite-Aid ID.
    It can’t be that you do not want to accept credit cards because you still accept the same cards that Apple does.

    Please don’t forget that you are not in the banking business but in the business of providing for your customer needs. You will still get my purchase history when I input my Rite-Aid ID.

    I am not going to have a knee-jerk reaction and stop shopping at Rite-Aid, yet. I know it takes time to correct a mistake made by your managers. But my choice is Apple Pay (with Rite-Ad Club ID) if you don’t correct your mistake by December, I WILL move my business one block away to Walgreens. They also have a reputation for exceptional customer service.

    Looking forward to continuing my long relationship with you.”

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