People using Apple Pay soared 52% YoY in November while the use of PayPal and traditional payment methods sank. Currently PayPal remains ahead of Apple Pay with 16% vs. 5% of all e-commerce purchases, respectively. But, Apple Pay is growing fast while PayPal is going the other way.
Adam Levy for The Motley Fool:
While the number of Apple Pay users was soaring, usage of PayPal and regular credit cards declined in November. While both of those methods have much larger user bases than Apple Pay for online and in-store transactions, respectively, this result signals that users are dropping older payment methods in favor of Apple Pay.
Apple’s ability to make greater headway is currently limited due to Apple Pay remaining exclusive to Apple devices. But there’s lots of room for Apple to expand.
With the capability of running credit checks, making lending decisions, and servicing financial products in-house, Apple could become a full-fledged fintech company a la PayPal. With in-house capabilities, Apple can more easily expand its financial services globally without having to find and negotiate with local partners in every market it wants to enter. And the growing adoption of Apple Pay, as well as the expansion of the services offered in Apple’s digital wallet, pose significant threats to the leading player in the space.
MacDailyNews Take: In August, The Wall Street Journal reported that Apple Pay is becoming ubiquitous, by summer 2022 having been activated on 75% of iPhones. Over 90% of American retailers now accept Apple Pay which is also the top payment app for American teenagers, according to investment firm Piper Sandler.
See also: Apple deepens financial push with new high-yield Savings accounts – October 14, 2022
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It’s reasonable to think that PayPal’s decline has something to do with their proposal–a few months ago–to penalize “mis-info posters,” which after uproar, they retracted.
For one, claiming to be a judge of what info is proper/helpful is like playing Gd these days and easily perverted for one’s own bias. On top of that, claiming to be the guardian of related purse-strings will do nothing but make users flee.
We need not another corp acting as king, making customers serfs.
52% among who, and where? Metrics matter, and if companies making such proclamations are not willing to release their samples than the data is quite literally useless. I have seen, where I am, people using Apple Pay in the wild the number of times I could count on one hand (and i have seen younger folks very embarrassingly stumble through the process and eventually pull out a card, holding up the line in a way even check writing doesn’t). This is bad data, and a dishonest metric. I have not once ever seen anyone do a quick blip with Apple Watch and move on. If they collected their data solely in San Francisco, then yes, it is likely accurate. Alas, there are 49 other states, and almost 20,000 other cities they appear to have failed to take into account.
I use apple pay (mostly watch) religiously. The only stores I go to that does not accept it are Wally-World, Homey Depot and Lowes. Everywhere else we shop accepts it and I use it. And I am almost 60 – on the entire other side of the country from San Fran
Sorry James:
I’ve been using ApplePay on my iPhone for over 3 years now and it takes 1 second after double-clicking the on/off button to pay my purchases whether at Trader Joe’s; Whole Foods; restaurants, grocery stores — no problem. Maybe you need to move.
BTW, I’m 76 years old.