Apple Pay Usage Estimated to Rise Sharply in United States Due to Frustration With Slow Chip-and-PIN Cards

by

Contactless payment methods like Apple Pay will rise sharply in the United States, from less than 2 percent of transactions this year to 34 percent by 2022, according to a new report shared by research firm Juniper Research.

Payment terminal with chip-and-PIN card support via Worldpay

Juniper Research argued that customer dissatisfaction at the slower speeds of chip card transactions, like chip-and-signature or chip-and-PIN, will further increase the adoption of smartphone-based payments, an area currently dominated by Apple Pay.

The transition towards contactless payments, and even the EMV standard that chip-and-PIN cards are based on, has been much slower in the United States compared to many other countries around the world.

In Canada, for example, chip-and-PIN cards have been common for over five years, while at least 80 percent of Canadian retailers are now accepting contactless payments, according to payment processor MONEXgroup.

Juniper Research expects the United States to follow a similar growth curve as Europe, where EMV and contactless payments are also widespread.

Apple CEO Tim Cook recently confirmed Apple Pay momentum is "strongest in international markets," where he said the infrastructure for mobile payments has developed faster than in the United States.

Cook added that three out of four Apple Pay transactions happen outside of the U.S., where the service first launched in October 2014.

Apple Pay will support Venmo-like peer-to-peer payments in the Messages app on iOS 11, starting in the United States. Apple Pay is also expanding to Denmark, Finland, Sweden, and the United Arab Emirates later this year.

Related Roundup: Apple Pay

Top Rated Comments

(View all)
Avatar
40 months ago
If only more retail accepted contactless payments. I'm looking at you Kroger.
Score: 8 Votes (Like | Disagree)
Avatar
40 months ago

Surprised to read that 3 out of 4 Apple Pay transactions happen outside of the US considering it was the first country to adopt Apple Pay.

Living in the UK, I've only ever used Apple Pay twice in the last 3 years as it's now commonplace for most credit and debit cards to have Contactless technology built into the card itself. Much easier and quicker to just pull out your debit card and touch it on the terminal and be done rather than having to play around with your iPhone. Heck, even one of the major supermarkets in the UK has recently issued millions of customers with their new contactless loyalty/points cards with the same technology.

Much quicker to double press the button on the side of my watch and hold it to the reader than pull out my wallet then pull out a card.
Score: 7 Votes (Like | Disagree)
Avatar
40 months ago
What the article didn't mention is that we've (Canada) had contactless tap-to-pay for years as well. It's hard convincing my friends to use Apple Pay when they can just tap their credit card instead.

For us, the only benefit is security. Speed is a non issue.
Score: 6 Votes (Like | Disagree)
Avatar
40 months ago
The only thing slower than chip-and-pin is a terminal that supposedly accepts Apple Pay but doesn't work and then you have to pull your card out.
Score: 4 Votes (Like | Disagree)
Avatar
40 months ago
Pay is so easy and convenient. It baffles me that more people don't use it.
Score: 3 Votes (Like | Disagree)
Avatar
40 months ago

Much quicker to double press the button on the side of my watch and hold it to the reader than pull out my wallet then pull out a card.

That's great, but I don't have an Apple Watch like most and always have my wallet in my pocket with only 2-3 cards. Literally takes less than a couple of seconds to pull out my debit card, tap and go.

Apple Pay on the iPhone however has always been slow and embarrassing to use. Half the time it would tell me to try again and end up causing queues and embarrassment trying to pay with my phone. It's much easier to just pull out my card, tap and go, especially on the London Underground and buses where there's crowds of people behind you all trying to make a swift exit out of busy stations.

What the article didn't mention is that we've (Canada) had contactless tap-to-pay for years as well. It's hard convincing my friends to use Apple Pay when they can just tap their credit card instead.

For us, the only benefit is security. Speed is a non issue.

That's also the same experience in the UK. Contactless debit/credit cards are more simpler. The only use I see with Apple Pay is having it as a backup if you've left your wallet at home.
Score: 3 Votes (Like | Disagree)

Top Stories

Here's How You Can Download iOS 14 and iPadOS 14 Around the World [It's Out]

Wednesday September 16, 2020 2:36 am PDT by
Apple's official public release of iOS 14 and iPadOS 14 dropped on Wednesday, September 16, just a day after the company released the Golden Master to third-party developers. Also set to be made available to the general public for the first time are watchOS 7 and tvOS 14. Getting Started With iOS 14 Video Click image to watch iOS 14 Getting Started While that's left a lot of developers...

When Will the iPhone 12 Launch? Here's What We Know

Wednesday September 16, 2020 6:12 am PDT by
Yesterday's "Time Flies" Apple event saw the release of the Apple Watch Series 6, Apple Watch SE, iPad 8, and iPad Air 4, but no new iPhone models. Rumors before the event strongly alleged that it would not see the unveiling of new iPhones, with many reports pointing to an October launch. The lack of new iPhone models yesterday seems to confirm that the iPhone 12 lineup will not appear...

Apple Releases iOS 14 and iPadOS 14 With Home Screen Redesign, App Library, Compact UI, Translate App, Scribble Support, App Clips, and More

Wednesday September 16, 2020 12:48 pm PDT by
Apple has released iOS 14 and iPadOS 14, the newest operating system updates designed for the iPhone and iPad. As with all of Apple's software updates, iOS 14 and iPadOS 14 can be downloaded for free. iOS 14 is available on the iPhone 6s and later, while iPadOS 14 is available on the iPad Air 2 and later. The updates are available on all eligible devices over-the-air in the Settings app. To ...

Apple Releases Safari 14 for Mac Ahead of macOS Big Sur Launch

Wednesday September 16, 2020 1:40 pm PDT by
macOS Big Sur didn't launch alongside iOS 14, iPadOS 14, tvOS 14, and watchOS 7 today, with the update coming later this fall, but Apple did release the Safari 14 update for macOS Catalina and macOS Mojave users. Safari 14 brings improved performance, customizable start pages, a Privacy Report to see which cross-site trackers are being blocked, and a new tab bar design that provides tab...

Apple Updates AirPods 2 and AirPods Pro Firmware to Version 3A283

Monday September 14, 2020 11:24 am PDT by
Apple today released new 3A283 firmware updates for the second-generation AirPods and the AirPods Pro. The second-generation AirPods are being updated from the 2D15 firmware they were previously running, while the AirPods Pros are being updated from the 2D27 firmware they had installed previously. Apple does not provide details on what's included in refreshed firmware so we don't know what's ...

iOS 14 Picture in Picture No Longer Working With YouTube's Mobile Website in Safari [Without Premium]

Friday September 18, 2020 12:21 pm PDT by
Apple in iOS 14 added Picture in Picture to the iPhone, a feature designed to let you watch a video in a small screen on your device while you continue to do other things on the phone. When Picture in Picture was working with YouTube The YouTube app doesn't support Picture in Picture, but up until yesterday there was a functional workaround that allowed videos from YouTube.com to be watched...

Hands-On With the New Apple Watch Series 6 and Apple Watch SE

Friday September 18, 2020 1:19 pm PDT by
Today's the official launch date for the Apple Watch Series 6 and the Apple Watch SE, both of which Apple announced on Tuesday. We picked up a couple of the new models and thought we'd give them a quick look for MacRumors readers thinking of ordering a new watch. Apple Watch Series 6 & Apple Watch SE Hands-On! When it comes to design, both the $399 Series 6 and the $279 SE look just like...

iOS 14.2 Beta Adds New Shazam Music Recognition Feature for Control Center

Thursday September 17, 2020 3:36 pm PDT by
Apple today released the first beta of iOS 14.2 to developers for testing purposes, and the new update introduces a Music Recognition control for the Control Center. The new feature lets you discover music playing around you and it recognizes the music playing with in apps, even when you're wearing AirPods. Songs pop up as notifications, and you can tap to listen in Apple Music....

8 Third-Party Home Screen Widgets That You Can Try Out Now on iOS 14

Wednesday August 5, 2020 12:56 pm PDT by
One of the biggest new features of iOS 14 is Home Screen widgets, which provide information from apps at a glance. The widgets can be pinned to the Home Screen in various spots and sizes, allowing for many different layouts. When the iOS 14 beta was first released in June, widgets were limited to Apple's own apps like Calendar and Weather, but several third-party developers have begun to test ...

Apple Releases watchOS 7 With New Watch Faces, Family Setup, Sleep Tracking, Handwashing Help and More

Wednesday September 16, 2020 12:47 pm PDT by
Apple today released watchOS 7, the newest version of the watchOS operating system designed to run on modern Apple Watch models. The watchOS 7 update comes after several months of beta testing. ‌watchOS 7‌ can be downloaded for free through the dedicated Apple Watch app on the iPhone by going to General > Software Update. To install the new software, the Apple Watch needs to have at...