As it passes 2 million locations, does Apple Pay really matter?

“In the weeks since Apple’s earnings, a number of metrics have come to light that testify to Apple Pay’s impressive growth since its 2014 debut,” Andrew Tonner writes for The Motley Fool. “On its conference call, Apple reported that over 5 million points of payment currently support Apple Pay. Furthermore, a recent Bloomberg report claims that Apple Pay availability now exceeds 2 million total retail locations, up substantially from Apple’s reported internal goal of 1.5 million retail locations by the end of 2015.”

“What’s more, thanks to its increased exposure, Apple Pay has seen an acceleration in usage,” Tonner writes. “On its recent investor call, Apple said its mobile payments solution saw its growth rate accelerate over tenfold from the first half of 2015 to the second half.”

“nd with mobile payments expected to increase from $450 billion last year to $620 billion in 2016, the outlook for Apple’s mobile payment product remains favorable,” Tonner writes. “While its impact in isolation might not move the needle for Apple, investors shouldn’t underestimate the effect of increasingly key services such as Apple Pay as part of its broader ecosystem.”

Read more in the full article here.

MacDailyNews Take: Apple Pay is yet another reason why users iPhone users stay iPhone users.

Apple Pay support reaches 1,000 U.S. banks and credit unions – February 5, 2016
Apple Pay locations reach 2 million, with Chick-Fil-A to come – February 4, 2016
Apple Pay coming to ATMs from Bank Of America and Wells Fargo – January 28, 2016
Apple Pay picks up 58 new US card issuers, approaches 1,000 total banks and credit unions – January 5, 2016
Pay Finders app for finding Apple Pay locations reports 750% increase in users in two days – December 28, 2015
Why Apple’s revolutionary Apple Pay is going to be absolutely enormous – December 18, 2015
Apple Pay to take on Tencent’s WeChat Wallet and Alipay in China – December 18, 2015
Apple partners with UnionPay to launch Apple Pay in China – December 17, 2015


  1. It all adds up… Apple pay is no small thing.

    And using Apple pay on my applewatch is just AWESOME… The watch is worth it for that feature alone… BUT there is so much more to it .

    Absolutely love Applepay !

  2. Apple Pay has potential for much greater growth, only if someone were to offer incentives.

    Almost everyone around me has iPhones; half of them 6 and newer. I am the only one currently using ApplePay actively; most others apparently can’t be bothered. It is difficult to be the geeky Mac head in the crowd, trying to convince people how convenient, practical and, most importantly, secure it is over the traditional credit card.

    What is needed is a strong push to motivate all those for whom it is too much hassle to set it up.

    For me, it is meaningfully easier and faster to pull out the phone out of my pocket (single-handed action) than to pull out a wallet, pick the credit card, swipe, put the card back and the wallet back. If all PoS terminals had Apple Pay, I would likely not bother carrying a wallet anymore.

    1. Apple Watch is the killer app for Apple Pay. Most people can’t see the benefit in pulling their phone out of their pocket to pay versus pulling their wallet out of their pocket to pay. But when it’s on your wrist, you use it.

    2. Perhaps security leaks have to happen more frequently to prompt the other iPhone users around you to use Apple Pay. Physical cards are still too convenient over Apple Pay for them as of yet and secure enough for their peace of mind.

      1. The fact is, physical cards are actually NOT more convenient that the Apple Pay; I find it simpler, easier and faster to pull out the phone than to dig for wallet, dig for card, return card, return wallet. Obviously, problem is that most people find the difference trivial, even if it IS easier with the phone. It is simply not significant enough for anyone to bother.

        In my case, I upgraded my 5s (to 6s) when Discover Card announced ApplePay and promoted it with a 10% cashback until the end of 2015 (this was in September). I did some quick math, found out that the three places where I spend a lot of money accept ApplePay, so I sold my old 5s and bought a new 6s. The 10% cashback from Discover during those three months had essentially completely covered the gap between the price I got for my 5s and what I paid for 6s (some $300). In other words, Discover’s 10% cashback incentive motivated me to upgrade my phone and sign up for ApplePay. Cashback incentive is now gone, but I use ApplePay wherever I can, and where they don’t accept (even though PoS terminals have the capability), I make sure I tell them that they should enable it.

        1. That Discover deal was excellent.. I told my co-worker about it and he jumped at signing up.. Turns out since he was a new customer not only did he get the 10% for Apple Pay but also a matching bonus at the end of one year of being a Discover Card user.. So in effect getting 20% back for all Apple Pay purchases. He went crazy at the Apple Store with purchases so he expects back over a $1000 later on those purchases.

      1. No, not really. In my circle of people, most tend to consider me as the technologically most astute one, and they ask for advice on many tech-related issues. I am often the one to champion whatever new technology is available to make people’s lives easier. ApplePay is just one such technology.

  3. Meanwhile back in Canada all the store do their best to disable Apple Pay even if they accept MasterCard. There are only a few that accept it. Most say, “Oh the touch feature doesn’t work yet, we are working on turning it on”.

    “Working on turning it on”?????? It was working quite well before Apple Pay came to Canada.

    Weird how, “Working on turning it OFF”, happened instantaneously.

  4. I was hopeful Apple Pay would be a convenience, although I had no illusions that it would justify the cost of the watch.

    Sadly, it’s not even that good. In SE Michigan and NE Ohio, Apple Pay has virtually no real penetration.

    I can use it at Walgreen’s and in McDonald’s, but virtually nowhere else–including most major grocery stores, convenience stores, and restaurants. Out of over 100 stores in the mall, maybe four or five accept Apple Pay. It is common to find card machines with the little symbol saying it works, but mostly I get told, “Oh, that hasn’t been hooked up yet.” Few of the big box stores or department stores seem to take Apple Pay either. In restaurants, no one has portable devices to take it. You still need to hand over your card.

    The result is that I get to use Apple Pay three or four times a month, and it’s not that much more convenient than sliding the card. That’s especially true when I mistakenly try to use it, assuming the reader works, then have to use the card anyway.

  5. I spent a month back in the Bay Area for the holidays, in and around Silicon Valley. Apple Pay adoption was spotty at best. Some places accepted it but I still had to go through several steps on the keypad making the time-saving and convenience aspect irrelevant. Apple has probably done the best they can and the roadblocks are on the retail end, like with Apple’s future TV service. Either way it hasn’t been useful for me. Until it works virtually everywhere you’re not going to stop carrying credit cards.

  6. I have only a few AP locations near me – and most POS’s haven’t even had the chip reader enabled. I ask every time I use one and get the same story – ‘Not yet, don’t know when…’ I get the feeling AP is lower priority than the chip readers so it might not happen for a long time in the majority of stores.

  7. I wish I had an iPhone 6… still have my iPhone 5, but it predates Apple Pay, sadly. :<

    But, my iPhone 5 still works, and I have no real reason to upgrade just for one feature.

    That being said, though, Apple Pay is a useful tool, of which I see more users down the road. As more credit cards are compromised each and every day, greater security is ideal.

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