As Apple Pay gains traction faster than anticipated, Bidness Etc discusses how it ranks among other technological payment services
AAPL
Apple Inc.'s (NASDAQ:AAPL) latest success has likely arrived with the advent of Apple Pay, which completed its first full month of operation in November. It was announced earlier that over 1 million credit cards registered with Apple Pay in the first 72 hours of its launch.
The effect of that is now visible as Apple Pay is becoming a prominent and major part of the country's mobile payments arena. According to the latest ITG investment research report, Apple Pay contributed 1% of digital payments in November.
Apple Pay customers made roughly 1.4 transactions per week, with 60% of users making multiple purchases; compared to 20% from PayPal. Apple Pay's top transactions are from Whole Foods (20%) and Walgreens (19%), followed by McDonalds (11%).
Since the release of iPhone 6 and 6 Plus phones, which support Apple Pay, both consumers and suppliers have rushed to be a part of Apple's latest innovation. Many retailers have jumped on the bandwagon for Apple Pay, which is an unexpected success based on the retention rates it offers.
Senior Internet analyst at ITG Investment Research, Steve Weinstein, has stated that Apple Pay may be a major threat to PayPal, the current market leader in the Mobile Payment space. Consumers feel Apple Pay is more secure and seamless in terms of its functionality.
The platform exhibits “stickiness” for consumers, as those who used it once at a retailer continued to use it for 66% of the next few visits.
However, even though the use of Apple Pay is limited within the US and to current-year iOS devices, that may change soon.
AAPL
Apple Inc.'s (NASDAQ:AAPL) latest success has likely arrived with the advent of Apple Pay, which completed its first full month of operation in November. It was announced earlier that over 1 million credit cards registered with Apple Pay in the first 72 hours of its launch.
The effect of that is now visible as Apple Pay is becoming a prominent and major part of the country's mobile payments arena. According to the latest ITG investment research report, Apple Pay contributed 1% of digital payments in November.
Apple Pay customers made roughly 1.4 transactions per week, with 60% of users making multiple purchases; compared to 20% from PayPal. Apple Pay's top transactions are from Whole Foods (20%) and Walgreens (19%), followed by McDonalds (11%).
Since the release of iPhone 6 and 6 Plus phones, which support Apple Pay, both consumers and suppliers have rushed to be a part of Apple's latest innovation. Many retailers have jumped on the bandwagon for Apple Pay, which is an unexpected success based on the retention rates it offers.
Senior Internet analyst at ITG Investment Research, Steve Weinstein, has stated that Apple Pay may be a major threat to PayPal, the current market leader in the Mobile Payment space. Consumers feel Apple Pay is more secure and seamless in terms of its functionality.
The platform exhibits “stickiness” for consumers, as those who used it once at a retailer continued to use it for 66% of the next few visits.
However, even though the use of Apple Pay is limited within the US and to current-year iOS devices, that may change soon.
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