Apple Pay Adoption is at 11% but 68% Have Encountered Problems at Check-Out [Report]

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Posted March 31, 2015 at 9:09pm by iClarified

A new report from Phoenix Marketing has found that an impressive 11% of all credit card owning households and 66% of all iPhone 6 owners have signed up for Apple Pay. Most users linked a credit card (82%) but 53% linked a debit card and 20% registered a GPR prepaid card.

Setting a new standard in conversion from ‘app-ready’ to ‘app usage’, 88% of those setting-up the wallet went on to use Apple Pay to make an in-store or in-app purchase. In the pre-Apple Pay market, the average conversion rate hovered around 50%. The research estimated the Apple Pay user base at around 8 million households and some 12 million individuals -- since the average household purchasing an iPhone 6 purchased more than one handset.

“However, the early-on transaction potential is being undercut by low repeat usage and lost payment opportunities,” said Greg Weed, Director of Card Research at Phoenix. “The demand is there: 59% of Apple Pay users have gone into a store and asked to make a purchase with Apple Pay. But so is the disappointment: 47% visited a store that was listed as an Apple Pay merchant only to find out that the specific store they visited did not accept (or were not ready to accept) Apple Pay.”

“Even though Apple Pay users generally give the scheme high marks and 23% expect to significantly increase use over the next 3 months, problems at check-out are downgrading transaction potential,” said Leon Majors, Senior Vice President at Phoenix. “Two-out-of-three Apple Pay users have reported a problem at checkout – mostly related to terminals not working or taking too long to make the transaction, inaccurate posting of transactions and the inability of cashiers to help buyers who needed assistance in using Apple Pay,” Majors added.

“Since Apple Pay is still in an introductory mode and the NFC acceptance network still has a long way to go, adding a continuously updated ‘local store directory’ to the Passbook app is a necessary, short-term product improvement,” said Mr. Weed. “Posting a list of participating retailers on a website is not cutting it. In the last four months, 48% of users have paid with Apple Pay just one time and that’s not going to cut it either.”

The Phoenix report, ‘Apple Pay: The First Four Months is part of an ongoing Apple Pay study. The company expects to survey 16,000 customers in 2015 to monitor the new mobile payments platform.

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Apple Pay Adoption is at 11% but 68% Have Encountered Problems at Check-Out [Report]

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gamerscul9870 - April 1, 2015 at 3:05pm

Mit Romney isn't and neither am I. Hasn't happened yet!

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SimonSays - March 31, 2015 at 10:19pm

I use apple pay on a daily basis and have yet to encounter a single problem other than the idiotic cashiers asking to see my phone and ID.

NoGoodNick - April 1, 2015 at 3:07am

You're clearly dreaming. Some stores have issues every single time I visit. Other sites (stores) falsely claim to accept Apple Pay but don't . What's more, when I upgraded my phone, I could no longer use Apple Pay and couldn't modify the information. I was only to resume using it by returning the phone to factory settings. Most of the problems I've encountered, aside from the last, are due to poor planning on the part of businesses who are still hoping to adopt a system that doesn't charge a percentage of sales, but that system is still far from implementation. I've stopped visiting any of the sites that claim to use Apple Pay but don't (or who only accept it online but not in-store). There's a problem with Apple Pay, but it's NOT with Apple, it's with disreputable businesses.

iPhone 6 Plus is my boy - March 31, 2015 at 9:39pm

Apple Pay did okayish in the beginning. But they shouldnt charge merchants extra fees for using Apple Pay when they already get 2-3% fees from VISA/MC/etc. Bad move Apple

gamerscul9870 - April 1, 2015 at 10:55am

Bad move by Apple? The banks and stores got involved from this, it was their idea to implement cards into Apple pay to use it. It's their fault. Apple was the one that asked the stores.

iPhone 6 Plus is my boy - March 31, 2015 at 9:17pm

Yesss Apple Pay just got serve. I was able to use Apple Pay in almost anywhere at day 1. But now nobody accepts them except very small amount of stores. Kinda kills the purpose of biggest feature on new iphone since you cant use them thoroughly. Sad face

gamerscul9870 - March 31, 2015 at 9:43pm

Yeeeahhhh right, the only thing served is how Samsung tries to copy. This is what foreshadows trying to mimicking a feature they learn from. It's android all over again. Out of many times I used Apple pay, not a single failure has ever happened to be tbh. Besides most of these problems are the cashier's fault. They got into configuring Apple pay with the cards and all.

iPhone 6 Plus is my boy - March 31, 2015 at 10:15pm

Did u even read the article?

gamerscul9870 - March 31, 2015 at 11:23pm

more than you, but I a, saying from MY experience. Not to mention the Bank of America users being charge 2x the amount they normally paid due to how terrible I heard they are.