“We are optimistic about cashless payments generally and, in the past, have been enthusiastic about Apple Pay. However, our sense of Apple Pay is mixed at the moment,” Market View writes for Seeking Alpha. “As we monitor the page of retailers that accept Apple Pay, we are concerned that it’s not adding new merchants quickly enough.”
“Apple management has noted that ‘Apple Pay is growing… with more than five times the transaction volume of a year ago.’ Last month in Apple’s quarterly earnings call, management said that Apple Pay’s ‘estimated monthly active users (were) up more than 450% year on year’ the prior month,” Market View writes. “However, actual metrics are not disclosed and the growth is off a very low base. Services revenue, the category in which Apple Pay is recorded, grew 23% in the first half of fiscal 2016 to 10% of total revenue from 7%, but Apple Pay is just one component of Service revenue.”
“Maybe part of what we perceive as slowness in driving merchant integration is just the early stage of contactless payments in the U.S.,” Market View writes. “In fact, according to Digital Trends, Apple Pay dominates the domestic contactless payments market, accounting for “75 percent of all contactless payments in the U.S.,” but mobile wallets are a niche product at this early point. Domestically, only 0.2% of all in-store sales were paid for using smart devices in 2015, according to research firm eMarketer.”
Read more in the full article here.
MacDailyNews Take: As retailers upgrade their antiquated POS infrastructure, we’re finding – anecdotally – Apple Pay to be more widely available. We’ve paid by Apple Watch more in the last two months than in the previous ten because the capability is now there at more places.
This is a marathon, not a sprint.
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