ITG, a leading independent execution and research broker, today announced the release of an ITG Investment Research Report on Mobile Payments, focusing on the new Apple payments product, Apple Pay. Based on early trends since the October 20th launch, the research finds that Apple Pay has the ability to significantly transform the mobile payment space.
The ITG Mobile Payments report, which uses data from the ITG Investment Research proprietary consumer panel, found that Apple Pay was responsible for 1% of digital payment dollars in the month of November. This is a strong showing considering that the service is only available to Apple customers with the newest hardware and it is currently supported by a relatively limited list of merchants. In comparison, Google Wallet, which launched in 2011, accounted for only 4% of digital payment dollars in the same month.
Apple Pay could pose a major threat to market leader PayPal’s current dominance of the Mobile Payment space, according to Steve Weinstein, Senior Internet Analyst at ITG Investment Research. Citing PayPal’s significant infrastructure barriers (a challenging relationship with payment counterparties and the lack of biometric capability) in comparison to Apple Pay’s compelling mobile payment solution, Weinstein believes that it will be difficult for PayPal to match the ease of use and consumer appeal of the Apple solution.
Key Research Findings
• 60% of new Apple Pay customers used Apple Pay on multiple days through November, suggesting strong customer engagement. In comparison, New PayPal customers used the service on multiple days during the same time period just 20% of the time.
• Apple Pay customers used the service roughly 1.4 times per week and used Apple Pay at the same merchant for future transactions roughly 66% of the time.
• Upon adoption of Apple Pay, the average consumer uses the service for approximately 5.3% of all future card transactions and 2.3% of all future card dollars spent.
Top 5 Apple Pay Retailers, Transaction and Spending Distribution
ITG (<a href="http://www.itg.comwww.itg.com) is an independent execution and research broker that partners with global portfolio managers and traders to provide unique data-driven insights throughout the investment process. From investment decision through settlement, ITG helps clients understand market trends, improve performance, mitigate risk and navigate increasingly complex markets. ITG is headquartered in New York with offices in North America, Europe, and Asia Pacific.
Source: Investment Technology Group, Inc.
MacDailyNews Take: Boom!
[Thanks to MacDailyNews readers too numerous to mention individually for the heads up.]
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Entrepreneur warns retailers, restaurants, bars: Do not wait, jump on the Apple Pay bandwagon ASAP – November 5, 2014
Apple Pay fuels usage of long-moribund Google Wallet – November 5, 2014
After CVS and Rite Aid blocked Apple Pay, Schubert law firm launches antitrust investigation – November 4, 2014
Sorry, Walmart, CVS, Rite-Aid et al. — Apple Pay and NFC have already won – November 4, 2014
Apple pay is not just simple, it’s also kinda….fun. No apps to open, no phone to awake. Just point with your thumb gently resting on the home button and boom. It’s baffling and magical. And it makes me want to spend more just to see it work. As for PayPal? Please quietly go away. Super complex and evil.
I actually had one cashier at a McDonald’s get excited when I pointed my phone at the reader. She’d heard about Apple Pay but had never seen it done before.
You sure it wasn’t the selfie of your winky you use for your wallpaper?
My credit union doesn’t support Apple Pay yet but is looking into it. In the meantime I will continue to use PayPal online when possible. It’s simple and I don’t spread my info around. Hating everyone and everything that is not Apple is counter productive.
Who was that since at.
Sorry, that was for the comment by Mr.Banks.
I love to see the reaction on the cashier’s face when I use my Apple Pay to check out…..And they say something like, “What did you just do” or “What just happened”? Defintely cheap entertainment! You’d be surprised how many merchant employees working at the checkouts, still don’t know anything about Apple Pay!
Wait till half the iPhone owners whose contracts are up next year have the opportunity to upgrade their phones. The usage will double. Love my 5S, but ……
Apple Pay is incredibly simple to use . . . except when it comes to Subway. More than half the time in numerous locations they could not get it to work and I had to pull out my wallet and use a credit card. In one case I had to write them a check because I didn’t have my wallet on me. I even had one manager tell me that it doesn’t work and they had no plans to fix it.
This isn’t Apple’s fault even though I’m sure they are getting the blame, especially if it is someone’s first time trying Apple Pay. It’s those cheep looking card readers Subway bought that the manufacture claims “also does NFC!”
I went to Home Depot and pulled out my phone to pay. The cashier quickly told me that they don’t accept Apple Pay. I politely informed her that they do, but simply don’t know it yet. I proceeded to with the transaction which went through without any issues. The cashier was amazed and a bit angry that management hadn’t told them that customers could use Apple Pay. I decided to pay a visit to the service desk to speak with the management. They claimed that corporate hadn’t made any mention of Apple Pay, but they would look into it. I went back a couple of weeks later and the same cashier remembered me and said that she had had several others use Apple Pay and was grateful to see it during the holiday season since it made her job much easier.
I had a Home Depot Associate say the same thing to me, not thinking ApplePay worked there, but I paid the transaction with my 6+! She and another Associate watched in amazement & shocked Mgmt didn’t tell them about it! I explained that Home Depot was part of CurrentC & they won’t advertise ApplePay!
Yep, Home Depot works like a charm. Too bad they don’t sell turkey sandwiches. 😉
Thanks for sharing this data. This stacks up well against what we are experiencing. It’s also helped wake up retailers to get their brand along side their customers credit card in what is fast becoming the wallet of choice for iPhone users. Any brand can tap into this phenomena, with or without Apple Pay, with services like loopyloyalty.com or PassKit for more sophisticated businesses.
1% may not seem a lot, but this is a major achievement and no doubt this figure is going to grow in the forthcoming months. Strenght of a brand, trend of a brand, high techonological maestria and social scale marker…
Take this in your “Shorts” Kass!