Apple Says 35% of U.S. Merchants Accept Apple Pay
While speaking at the Code Conference today in San Francisco, Apple Pay vice president Jennifer Bailey announced that 35% of U.S. merchants now accept Apple Pay, reports The Verge. She said that only 4% of merchants accepted the payment option two years ago when it debuted.
Bailey says the new EMV chip cards are annoying customers and have helped drive adoption. "Once you figure out you have to chip, you wait a while, you wait awhile," she said before imitating the "BEEP" sound the chip reader makes when you can remove your card.
Apple won't be marketing Apple Pay to take advantage of the annoyance toward EMV chips, Bailey said, instead focusing on creating new partnerships with banks and merchants. "Knocking EMV is not necessarily the way to go," she said. "I think it's to increase acceptance and work with great partners."
The Cupertino company is also focusing on offering deals with retailers and banks. In November, Apple debuted
exclusive holiday offers for those who use Apple Pay on the web. Promotions included one- or two-day free shipping with Adidas and 50% off a one-year subscription to
The New York Times. Bailey notes that Apple has to work with partners for special offers because Apple doesn't collect transaction data, eliminating its ability to offer promotions by itself.
Bailey says that Apple is excited by the speed of the transition to contactless payments. However, Bailey says that the challenge for Apple is that they have to match the speed of the transition to EMV chip readers. Apple has to get retailers and merchants to adopt Apple Pay at the same time they adopt EMV chip readers so that consumers can more easily see the benefit of Apple Pay.
Bailey also teased what was next for Apple Pay, saying that the company is thinking about "everything in your wallet."
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