Most people would assume Apple Pay is incredibly popular by now. That may be true in certain regions, but it is far from a mainstream payment method. Even though there is year over year growth once again, things are still looking a bit bleak. On the upside, the number of transactions has tripled, which is a very promising sign.
It is evident Apple Pay is a convenient mobile payment option. Everyone who owns a recent iPhone has access to this solution as of right now. Although it is not accepted by most in-store merchants outside of the US, the online retailers see merit in this option. Loup Ventures claims online merchant adoption of Apple Pay is up by nearly 50%. A positive sign, but there is still a very long way to go. Consumers still prefer more traditional payment solutions first and foremost.
The Future Looks Interesting for Apple Pay
Apple remains rather optimistic on this front, though. In their opinion, the growth of Apple Pay will become exponential in the next five years. More and more online retailers start dealing with this payment option. As such, we also see an increasing number of transactions. Right now, the number of Apple Pay transactions in 2017 was three times as high as 2016. It is remarkable growth, yet still only represents a fraction of the market.
One thing to keep in mind is the number of global banks supporting Apple Pay. As of right now, 2,707 institutions offer this option to their customers. While that may seem like a lot, it’s a drop in the proverbial bucket. Additionally, there are 127 million active users of this payment method. This only represents 16% of the iPhone user base. It is evident this situation needs to improve sooner rather than later. How that will happen exactly, is anyone’s guess as of right now.
Unsurprisingly, international markets see more growth compared to the US. Moreover, the overall user adoption has been disappointing in many different ways. Even though things may still pick up, the start is rather slow, all things considered. It will be interesting to see what the future will hold for this mobile payment method in that regard. The current situation does not appear all that great, but it’s far from disastrous as well.
Header image courtesy of Shutterstock