Apple Inc. (AAPL) A Look at Apple Pay Usage Statistics
Apple Inc. (NASDAQ:AAPL) has witnessed an impressive adoption of its Pay app in a short period. The company launched its Pay app in its latest model iPhone 6 on October 16. Immediately, it started witnessing an impressive adoption rate. Through November end, Apple’s Pay has accounted for 1.7% of mobile payments.
Focus On Apple Pay
Interestingly, a leading independent research firm, Investment Technology Group (NYSE:ITG) disclosed its research report about mobile payments with the focus centered on the newly launched Apple Pay app. It believes that Apple Pay has the potential to transform the mobile payment segnent considerably based upon trends since the launch period.
The research firm said that its mobile payments report established that Apple Pay represented 1% of digital payment during the month of November alone. ITG said that it was a strong show because the service was available only to customers of Apple, and only those with the newest models of its iPhone. Also, Apple’s hardware is said to be supported comparatively by a limited number of merchants only.
On the other hand Google Inc (NASDAQ:GOOGL)’s Wallet app, which was unveiled in 2011, represented 4% of digital payment in November. ITG’ senior Internet analyst, Steve Weinstein, said that the current dominant position of PayPal can be questioned by the growth of Apple Pay. He pointed out the lack of biometric capability of PayPal compared to Apple’s Pay as one of the significant infrastructure barriers for PayPal. He believes that it would not be an easy task for PayPal to match with Apple for the ease of use apart from customer appeal.
According to ITG, Whole Foods Market, Inc. (NASDAQ:WFM) was the top retailer to witness Apple’s Pay app. The company recorded 20% of Apple Pay transactions while it was 28% in terms of dollar payments. Similarly, Walgreen Company (NYSE:WAG) witnessed 19% of transactions and 12% of dollar payments through Apple Pay.
The other three retailers among the top five were McDonald’s Corporation (NYSE:MCD), Panera Bread Co (NASDAQ:PNRA), and Subway. These three companies recorded 11%, 6% and 3% of transactions while accounting of 3%, 2%, and 1% of dollar payments respectively. Together, the top five accounted for 58% of Apple Pay in terms of transactions while it was 45% in terms of dollar payments.
ITG said that 60% of customers used Apple Pay on a number of days in November indicating strong customer adoption while PayPal witnessed 20%. Similarly, customers used Apple Pay approximately 1.4 time a week and used at the same merchant approximately 66% of the time for future transactions. The average consumer uses of Apple Pay accounted for roughly 5.3% of all future card transactions while it was 2.3% of all future card dollars spent.
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