“According to those who track such things, actual Apple Pay usage on a per user basis has fallen, despite a few hundred million Apple devices which can use the system, and adoption by retailers seems to have slowed as well,” Dave Farrington writes for NoodleMac. “What’s going on? Why isn’t Apple Pay being used more by those who have it installed, setup, tried it, and like it?”
“We’re still in the early days of Apple Pay and anyone who expected massive overnight adoption does not understand much about technology, systems, or human beings. It took years for the iPhone and iPod to become hit products,” Farrington writes. “People are creatures of habit so getting us to change our daily procedures and methods remains a challenge not only for Apple, but for retailers.”
“Apple has the wherewithal– financial and customer base- to provide an incentive for customers to use Apple Play more frequently, and definitely needs an incentive to get retailers to adopt Apple Pay to help avoid the problem with ‘chicken and egg’ syndrome,” Farrington writes. “Points? Rebates? Credit for iTunes? Whatever Apple comes up with, whether in concert with credit cards and banks, or retailers, needs to be designed to help me decide to use Apple Pay more frequently. Credit card banks do this all the time with mileage and rebates. They are incentives to use a specific car a specific way. Apple Pay needs the same thing.”
Read more in the full article here.
MacDailyNews Take: Imagine at the special media event to introduce the next-gen iPhone next month, Apple CEO Tim Cook says 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.
As we wrote nearly one year ago to the day:
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.
And, BTW: That was written before Apple Watch made the process so seamless that nobody in line (or the cashier, half the time) even notices how or that we paid, but we still think Apple should take some of tiny portion of their cash mountain and put it to good use incentivizing (and training) their customers to use Apple Pay.
SEE ALSO:
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
I love Apple Pay, unfortunately the amount of places I can use it at that I frequent is under 5 places. My small organic grocery store, Walgreens, McDonalds, “most but not all” Whataburgers (or doesn’t work in drive-thru”, and that’s about it.
I can’t use it at ANY gas stations in my area, why QuickTrip, Texaco or On the Run don’t use it is beyond comprehension. Last time I was in Krogers, I couldn’t use it but the guy bagging my groceries thought they were supposedly getting it by the end of the year. Starbucks which has been a LONG TIME Apple supporter forces you to use THEIR app instead of Apple Pay, and of course Walmart uses their own proprietary App which rarely works properly–and generally can’t find a checker who knows how to use/accept it…seriously epic fail there.
Chris
Here is probably a little hint for helping acceptance: introduce it in Germany already!
Looks like Shamsucks Pay isn’t doing too well:
Flaw in Samsung Pay lets hackers wirelessly skim credit cards. The tokens that are used to make purchases can be easily stolen and used in other hardware to make fraudulent transactions.
http://www.zdnet.com/article/flaw-in-samsung-pay-lets-hackers-wirelessly-skim-credit-cards/
When I tried to use the card at my grocery store, they asked me for a number from the app. I had no idea what they meant since I didn’t see any number. Alternately, I could show them the card. Well, that defeats the whole purpose, doesn’t it? THEN they wanted to see my ID. So using Apple Pay at the grocery was actually much more complicated than just using my chip card. None of the other grocery stores accept them. And my husband’s credit union doesn’t participate so his credit card won’t work. Apple has a lot of work on their hands to get this right.
The issue is not with Apple Pay it’s with the CC networks that charge higher fees to merchants. It’s also about tracking customer purchases. Walmart essentially wants to be their own bank to avoid higher fees. The Target Red Card for example gives 5% off every purchase, free online shipping and 120 days return and has two options. One option is the regular old CC you need to apply for and the other is a store card with the chip that can be linked only to your checking account shutting out the CC network. Merchants need to save money on transaction fees and that is what is really slowing down the transition to contactless payments. Your either in the network paying higher fees or your not. Hence the tape over the chip slots which I see everywhere. I will say Home Depot is in the network because they actually forced me to use the chip because they know how much MORE it costs a merchant when you get hacked.
My use of Apple Pay has declined over the past year for 1 reason – I switched banks to get actual interest on my money, and the bank I switched to does not use Apple Pay.
When I called and asked why the CSR said “we can pay you interest, or we can pay Apple for Apple Pay …” I’ll take the $250/yr in interest with no Apple Pay instead of $0.40/yr in interest with Apple Pay.