Apple Not Worried About Apple Pay's Slow Adoption, Believes on Path to Replace Cash and Cards

Apple's trouble with getting a wide array of its users, retail partners, and banks to adopt Apple Pay has been highlighted in a new article today by The Wall Street Journal, which also underlines a belief from Apple executives that the service's growth is adequate and that Apple Pay could soon become consumers' "primary payment system," in lieu of cash and credit cards.

Data collected from technology research firm Creative Strategies reported that 40 percent of U.S. consumers have raised concerns about security risks of adding a credit or debit card onto their iPhone, while more than 60 percent aren't even familiar with contactless payments.

While data from a recent Nilson Report noted that Apple Pay's rate of acceptance has "more than doubled since 2015," only a third of stores based in the U.S. have accepted it as a form of payment. Many well-known companies have rolled out support for the service, including Best Buy and Whole Foods, but there remain notable absences from Apple Pay's retail supporter list, namely Target and Wal-Mart.

macossierraapplepay
Braden More, the head of partnerships and industry relations at Wells Fargo, asked, "If you can’t use it everywhere, why are you going to switch?" This reticence by consumers to jump in on Apple Pay's launch is said to have permeated within the company surrounding its debut, to the point where Apple executives "were reluctant to promote it." Apple Pay has been noticeably absent from the company's advertising strategy since its launch, with just two Apple Pay-focused commercials being made in nearly three years.

Apple expected consumers to embrace Apple Pay as energetically as they did iTunes—an instant hit when it launched in 2003—because executives felt it was faster and safer than existing payment systems, a former employee on the project said. When retailers didn’t support it initially, the person said, Apple executives were reluctant to promote it and invest in retail terminals that would spur adoption.

More recently, the company has become less concerned with Apple Pay's slow adoption over the past few years, because it still sees the mobile wallet as a nascent service whose domination over the industry will come with time. "Does it matter if we get there in two years, three years [or] five years?" Apple senior vice president Eddy Cue said in an interview. "Ultimately, no." Cue compared Apple Pay's adoption as faster than other mobile wallets and thinks it could go so far as to replace cash, debit and credit cards as a primary payment system.

Until that happens, Apple Pay vice president Jennifer Bailey is working on beefing up the company's retail training so that users aren't more knowledgable of paying with the service than employees. The company is said to be working with retailers to add Apple Pay instructions into work manuals as a way to spread knowledge of the mobile wallet's check-out process.

Apple Pay made $30 million for the company in the last fiscal year, accounting for a small portion of Apple's total services business, which made $24.35 billion in total in the same period. While adoption is low and consumer knowledge remains slim, Apple's services business -- which includes iCloud, the App Store, iTunes, and more -- has become a point of focus for the company, so much so that it expects to double its revenue in this area by 2021, Apple Pay expectedly included.

For this reason, David Roberts of Nilson said that Apple Pay is right on the cusp of a wider, "ubiquitous" acceptance.

Nilson Report publisher David Robertson said that with about a third of U.S. retailers adopting it, Apple Pay is on the cusp of broad acceptance. “It’s going to become so ubiquitous that we will all do it,” he said.

Notably, the rest of 2017 is a big year for Apple and Apple Pay, as the year marks the three-year anniversary of Apple Pay, as well as the end of three-year contract agreements that the company made with banks and credit card issuers back in 2014. Apple will begin negotiations to renew these contracts for the next few years, which the company hopes to be a major contributing factor in helping to double its services revenue over the next four years.

Related Roundup: Apple Pay

Top Rated Comments

LiE_ Avatar
55 months ago
Works great in the UK, nearly all shops now have contactless which accept Apple Pay by default.
Score: 26 Votes (Like | Disagree)
jacobh101 Avatar
55 months ago
they are fighting with large corporations that think QR codes for payment is the future. #SAD
Score: 19 Votes (Like | Disagree)
profets Avatar
55 months ago
Contactless payment is not the future; lose your iPhone and without credit cards, you are stranded.

It's much easier to whip out a credit card.

Having said that I use Apple Pay at times.
Lol but what if you lose your wallet? Then not only are you without credit cards, but someone could likely be using them in the meantime.
Score: 15 Votes (Like | Disagree)
BvizioN Avatar
55 months ago
Since it was launched in UK I have been using it almost every day. Love it how I don't need to be worried if I have forgotten my walled at home when I head to work.
Score: 14 Votes (Like | Disagree)
ZCT Avatar
55 months ago
In all fairness, American consumers are notoriously slow to adapt to changes in payment methodologies.

Contactless and Chip and PIN systems have existed outside of America for well over a decade, yet so many American machines still have a Post It attached to them saying that the chip reader doesn't 'work.'

Our banks have kept us in the dark and moved at snails pace to adapt to changes in world banking, and it's pretty sad. After all a piece of VHS tape glued to a plastic card is a bit of a 1980s solution to things.

Heck, we're still using Imperial measurements over here, while the rest of the world adopted metric several decades ago.
Score: 13 Votes (Like | Disagree)
DrewDaHilp1 Avatar
55 months ago
The problem isn't with Apple or Apple Pay, I use it whenever I can. It's faster than using a chip card. The problem is with the big retailers not adopting it for their own reasons i.e not being able to track purchases.
Score: 12 Votes (Like | Disagree)

Top Stories

16 inch macbook pro m2 render

When Can We Expect the Redesigned MacBook Pros Now?

Wednesday June 16, 2021 7:11 am PDT by
With no sign of redesigned MacBook Pro models at this year's WWDC, when can customers expect the much-anticipated new models to launch? A number of reports, including investor notes from Morgan Stanley and Wedbush analysts, claimed that new MacBook Pro models would be coming during this year's WWDC. This did not happen, much to the disappointment of MacBook Pro fans, who have been...
maxresdefault

Apple CEO Tim Cook: Sideloading Apps Would 'Destroy the Security' of the iPhone

Wednesday June 16, 2021 10:49 am PDT by
Apple CEO Tim Cook this morning participated in a virtual interview at the VivaTech conference, which is described as Europe's biggest startup and tech event. Cook was interviewed by Guillaume Lacroix, CEO and founder of Brut, a media company that creates short-form video content. Much of the discussion centered on privacy, as it often does in interviews that Cook participates in. He...
2021 back t0 school

Apple Launches 2021 Back to School Promotion: Free AirPods With Eligible Mac or iPad Purchase

Thursday June 17, 2021 4:56 am PDT by
Apple today launched its seasonal back-to-school sale for the upcoming school year in the United States and Canada, offering students free AirPods alongside purchases of select Macs and iPad models. Similar to last year's promotion, this year's offer includes free AirPods alongside the purchase of a MacBook Air, MacBook Pro, the new 24-inch iMac, the Mac Pro, Mac mini, and the new M1-powered ...
m1 imac back

Some M1 iMac Models Shipping With Crooked Mountings

Monday June 14, 2021 12:50 pm PDT by
Some M1 iMacs appear to have a manufacturing defect that causes the display to be mounted on the stand in a way that's not perfectly aligned, leading to a crooked display. YouTuber iPhonedo over the weekend published a review of the M1 iMac, and he found that his machine appeared to be tilted on one side, a mounting disparity that was visibly noticeable and proved with a ruler. Another...
apple watch 6s 202009

Bloomberg: Apple Watch Series 7 to Feature Thinner Screen Bezels, Faster Processor, and Updated Ultra Wideband Tech

Monday June 14, 2021 3:41 am PDT by
This year's Apple Watch Series 7 is likely to have thinner display bezels and use a new lamination technique that brings the display closer to the front cover, according to Bloomberg's Mark Gurman. From the report: The Cupertino, California-based tech giant is planning to refresh the line this year -- with a model likely dubbed the Apple Watch Series 7 -- by adding a faster processor,...
files app ipados 15

iPadOS 15: Files App Gains NTFS Support, Progress Indicator, and More

Tuesday June 15, 2021 3:41 am PDT by
Apple in iPadOS 15 has added the ability to access NTFS-formatted media from within the Files app. The additional support for the Windows-related format, first discovered by YouTuber Steven Fjordstrøm, is read-only, so like on macOS you can't modify files stored on NTFS devices, but you can at least copy any data on them for working on elsewhere on your iPad. The Files app has also gotten a...
applecare lower prices

Apple Lowers Prices of AppleCare+ Plans for M1 MacBook Air and MacBook Pro

Thursday June 17, 2021 7:33 am PDT by
Apple today lowered the prices of AppleCare+ plans for MacBook Air and 13-inch MacBook Pro models equipped with the M1 chip. Coverage offered by the plans, as well as accidental damage fees, appear to remain unchanged. In the United States, AppleCare+ for the MacBook Air now costs $199, down from $249. The new price applies to both M1 and Intel-based MacBook Air models, although Apple no...
maxresdefault

Demo: Check Out AirPlay 2 on a Mac in macOS Monterey

Tuesday June 15, 2021 11:57 am PDT by
With macOS Monterey, Apple has introduced expanded AirPlay 2 support, so you can AirPlay content from an iPhone, iPad, or even another Mac to your main Mac. We thought we'd do a quick demo of this handy new feature in our latest YouTube video. Subscribe to the MacRumors YouTube channel for more videos. With AirPlay to Mac, you can extend or mirror an Apple device's display to a Mac, and since ...
apple new iphone case colors

Apple Releases New Sunflower, Cloud Blue and Electric Orange iPhone 12 Cases

Monday June 14, 2021 11:12 am PDT by
Apple today released silicone iPhone cases for the iPhone 12, 12 Pro, 12 Pro Max, and 12 mini in a series of new colors that include sunflower, cloud blue, and electric orange. Sunflower is a bright yellow shade, cloud blue is a soft, light blue, and electric orange is a bright orange that's darker than the kumquat color and more orange than pink citrus. The new cases are priced starting...
apple watch edition series 5 ceramic black prototype

Apple Planned Black Ceramic Apple Watch Edition Series 5

Wednesday June 16, 2021 5:45 am PDT by
Apple considered offering a black version of the ceramic Apple Watch Edition Series 5, according to newly-shared images of the prototype casing. The images, shared on Twitter by the prototype collector and leaker known as "Mr. White," show a prototype black ceramic Apple Watch casing, alongside the white ceramic version. The ceramic Apple Watch Edition Series 5 was never available in a...