“Apple Pay marks its two-year anniversary this week, and while it supposedly helped spark a revolution for in-store mobile payments, there’s not much celebrating by Apple or its payments rivals,” Matt Hamblen writes for Computerworld.

“While Apple, Samsung Pay, Android Pay and many others keep adding users, the rate of adoption is far below what was expected when Apple Pay arrived on Oct. 20, 2014,” Hamblen writes. “More worrisome is the low repeat-user rate. Many consumers will sign up for a payment app and try it out with contactless technology like Near Field Communications (NFC) on a smartphone once to buy something in a store. After that, many don’t bother to do it a second time, because it is just too easy to use a credit or debit card — or even cash, according to a recent survey. Strategy Analytics estimates there are now 11 million contactless mobile payment users in the U.S., but just 2.3 million who are active users. The firm said there are just a third as many NFC-based mobile payment users as it projected in 2010.”

“In-store mobile payments, “in a way, are a cool ploy with no purpose,” said Mark Ranta, director of product management for digital banking at ACI Worldwide. ACI provides mobile and other payments software to banks, merchants and others,” Hamblen writes. “‘People ask, ‘What’s the benefit?” Ranta added. ‘For someone who’s not tech savvy, they have probably tried it once and said, ‘What’s the big deal with this? Opening up my wallet and swiping my card wasn’t a big deal to me, so why do I need to get rid of that habit? Instead of relying on some weird, wireless thing — screw that. I have a physical card that I can put in a terminal.’ … ‘So far, mobile wallets, particularly NFC, have yet to integrate payments with loyalty in a compelling way,’ Patel said. ‘You need a single tap to redeem or accumulate points and coupons.'”

Read more in the full article here.

MacDailyNews Take: As we wrote back in August, imagine at the special media event to introduce the next-gen iPhone, Apple CEO Tim Cook said 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. So would millions of people.

As we wrote in August 2015:

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.

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