Apple Pay 'Making Up a Lot of Ground' With Competitors Thanks to Success of Apple Pay Cash

A new report out this week by Bloomberg highlights Apple's ongoing efforts to boost adoption of Apple Pay, which is said to be gaining more traction this year thanks to the launch of Apple Pay Cash, as well as a growing number of of retailers supporting the mobile wallet. Although it still struggles to surpass rival mobile wallets, analyst Gene Munster argues that Apple's real advantage lies in the fact that it's the only digital wallet with payment options for mobile apps, desktop, peer-to-peer, and in stores.

According to Munster, Apple Pay Cash's launch in December 2017 "was a big missing piece" to the Apple Pay ecosystem, and has led the company to "make up a lot of ground" with its competition in 2018.

apple pay cash 1
In total, 60 percent of United States merchants will have Apple Pay-ready equipment in their shops by the end of this year, which is an increase from three percent four years ago, when Apple Pay launched. Apple Pay already has made impressive growth in the United Kingdom, because merchants there "already accepted contactless payments and consumers were already using contactless cards," explained Crone Consulting CEO Richard Crone.

Multiple analysts believe that Apple's biggest opportunity in the mobile payments field is to increase acceptance of Apple Pay from e-commerce sites and to beef up the features of Apple Pay Cash. According to data from Crone Consulting, the number of online mobile app transactions using Apple Pay is "growing much faster" than transactions made inside retail stores. In this area, Apple Pay is used by hundreds of thousands of websites and is accepted by 85 of the top 100 global e-commerce apps. Senior managing director for Falcon Point Capital, Michael Mahoney, agreed:

“When it started, you’d tap and physically cause a purchase to be made,” Michael Mahoney said. “The whole world of mobile commerce has so much shifted to everything being done on the phone and shipped to you. My kids don’t even think of going to the store. Apple Pay has morphed along with that change in behavior.”

As of estimates from August, 31 percent of worldwide iPhone users have used Apple Pay in some way in the last year, up from 25 percent one year ago, according to Loup Ventures data. In regards to the total number of active users making at least two transactions per month, Crone Consulting estimates that Apple has 32 million users in the U.S., compared to its total user base of around 252 million global. In terms of U.S. usage, PayPal has the most at 250 million users and Walmart Pay is just below Apple Pay at 31 million users.

apple pay vs rivals bloomberg
Apple Pay Cash was the highest-rated peer-to-peer payments platform on the market, according to a review by Consumer Reports. The service beat out Zelle, Square Cash, Venmo, and Facebook Messenger P2P payments, mainly due to Apple's stronger privacy and security measures. Munster pointed out that the growth of Apple's P2P platform is convincing new people to add their banks into Apple Pay (which is required for P2P iMessage payments), many of which eventually add their credit and debit cards into Wallet as well to enable the main NFC features of Apple Pay.

Apple is also continuously expanding the mobile wallet into new countries, and this week Apple Pay will launch in Belgium. Belgium-based newspaper De Tijd reports that several sources believe Apple Pay will launch in early November -- as soon as tomorrow, November 1 -- with major bank BNP Paribas Fortis supporting the launch. Next, Apple Pay is said to be "coming soon" to Saudi Arabia.

Related Roundup: Apple Pay

Top Rated Comments

OldSchoolMacGuy Avatar
27 months ago

Contactless Apple Pay in stores is fun, but once we (the customer) are paying online, we (the customer) could care less whether it's Apple Pay or PayPal. PayPal works fine, has been around forever, is ubiquitous and platform and device agnostic. Almost every website shopping cart uses it as a payment option now. I can't see Apple Pay ever unsurping PayPal (or PayPal users bothering to switch).

ApplePay is an answer to Apple's problem, not the customer's.

I disagree. It's about simplicity for the customer. Apple Pay is far simpler in many cases. In-store, it's easier to quick tap our watch or phone to pay when compared to taking out the wallet, removing a credit card and inserting it into a chip-reader, then dealing with the prompts, etc.

Online, Apple Pay is also generally easier that PayPal. With Apple Pay, you simply click the phone button and you're done (or the TouchID on your MBP or MBA). No need to be redirected to the PayPal site, sign, click the confirmations, and be redirected back to the retailer website.

It's a far more seamless experience and one that can be done with far greater ease using Apple Pay.
Score: 13 Votes (Like | Disagree)
kevinbeared Avatar
27 months ago
20$ for ramen ? Marketing at Apple just lose touch with reality :D
Score: 12 Votes (Like | Disagree)
DaveOP Avatar
27 months ago

Contactless Apple Pay in stores is fun, but once we (the customer) are paying online, we (the customer) could care less whether it's Apple Pay or PayPal. PayPal works fine, has been around forever, is ubiquitous and platform and device agnostic. Almost every website shopping cart uses it as a payment option now. I can't see Apple Pay ever unsurping PayPal (or PayPal users bothering to switch).

ApplePay is an answer to Apple's problem, not the customer's.

Completely disagree. I love using ApplePay to pay for things on any website that supports it. Not having to create accounts, already having all my payment methods available. I use PayPal heavily for purchases on sites that don't support Apple Pay, but will choose ApplePay over PayPal 100% of the time when given the option.
Score: 11 Votes (Like | Disagree)
now i see it Avatar
27 months ago
Contactless Apple Pay in stores is fun, but once we (the customer) are paying online, we (the customer) could care less whether it's Apple Pay or PayPal. PayPal works fine, has been around forever, is ubiquitous and platform and device agnostic. Almost every website shopping cart uses it as a payment option now. I can't see Apple Pay ever unsurping PayPal (or PayPal users bothering to switch).

ApplePay is an answer to Apple's problem, not the customer's.
Score: 5 Votes (Like | Disagree)
Mike MA Avatar
27 months ago
There are quite a few countries were Apple Pay would gain more traction if it would be finally introduced at all.
Score: 4 Votes (Like | Disagree)
Arlo Timetraveler Avatar
27 months ago
I am asumming that it is not to buy Maruchan Ramen but to go to a ramen bar to get the good stuff.
Score: 4 Votes (Like | Disagree)

Top Stories

Apple Watc black friday 20 sale feature

Apple Black Friday 2020: Best Apple Watch Deals [Updated]

Wednesday November 25, 2020 4:01 pm PST by
Black Friday sales have begun on a variety of products, including the Apple Watch. There are quite a few deals across the Apple Watch lineup this year, including one of the lowest price we've ever seen the Apple Watch Series 3. Note: MacRumors is an affiliate partner with some of these vendors. When you click a link and make a purchase, we may receive a small payment, which helps us keep the...
AirPods Pro black friday 20 sale feature 2

Black Friday 2020: AirPods Pro Reach Lowest Price Ever [Updated]

Wednesday November 25, 2020 3:22 pm PST by
Black Friday has kicked off this week, and one of the first major sales for the AirPods Pro is available right now on Walmart. You can find this deal below, along with a few other solid discounts on the regular AirPods. Note: MacRumors is an affiliate partner with some of these vendors. When you click a link and make a purchase, we may receive a small payment, which helps us keep the site...
windows 10

Developer Successfully Virtualizes Windows for Arm on M1 Mac

Friday November 27, 2020 7:16 am PST by
Developer Alexander Graf has successfully virtualized the Arm version of Windows on an M1 Mac, proving that the M1 chip is capable of running Microsoft's operating system (via The 8-Bit). Currently, Macs with the M1 chip do not support Windows and there is no Boot Camp feature as there is on Intel Macs, but support for Windows is a feature that many users would like to see. Using the...
General black friday 20 sale feature

Thanksgiving Day Deals Still Available on AirPods, M1 Macs, Apple Watch Series 6, iPads

Thursday November 26, 2020 10:21 am PST by
Black Friday deals seem to start earlier and earlier every year, so there were already a wide variety of discounts available for Apple products on Thanksgiving Day. Many of the deals remain available even after Thanksgiving, but act fast, as inventory quickly fluctuates. Thanksgiving Day Deals on Apple Products — Still Available:AirPods with a wireless charging case remain available for...
iPhone black friday 20 sale feature

Apple Black Friday 2020: Best iPhone Deals

Friday November 27, 2020 12:56 pm PST by
Black Friday is halfway done, but there are still a few deals to shop for on iPhones at carriers like AT&T, Verizon, and T-Mobile/Sprint. Note: MacRumors is an affiliate partner with some of these vendors. When you click a link and make a purchase, we may receive a small payment, which helps us keep the site running. AT&T Starting with AT&T, you'll find up to $700 off any iPhone 12 when...
13 16 inch macbook pro air trio

Reliable Leaker Suggests Redesigned MacBooks in 2021 Will Include Both Apple Silicon and Intel Models

Wednesday November 25, 2020 9:15 am PST by
Reliable leaker known as "L0vetodream" has today suggested on Twitter that redesigned MacBooks coming in the second half of 2021 will include models with both Apple Silicon chips and Intel processors. The brief Tweet came in response to a MacRumors article from earlier today, which outlined a report from Ming-Chi Kuo claiming that Apple plans to release redesigned MacBook models with Apple ...
iphone trade in store

UK Environmental Committee Says Apple Contributing to 'Throwaway Culture' of 'Short-Lived Products'

Thursday November 26, 2020 7:07 am PST by
Technology companies like Apple are contributing to e-waste by making their products difficult to repair, and charging expensive repair fees, according to a lengthy report published today by the UK Parliament's Environmental Audit Committee. "We were told that Apple glues and solders parts together on their laptops, which makes repairing them very difficult," the Committee wrote in a summary ...
m1 chip macbook air pro

Kuo: Redesigned MacBooks With Apple Silicon to Launch in Second Half of 2021

Tuesday November 24, 2020 7:53 pm PST by
Apple plans to release additional MacBook models with Apple Silicon in the second half of 2021, according to analyst Ming-Chi Kuo, as part of the company's two-year transition away from Intel processors across its Mac lineup. In a research note today, obtained by MacRumors, Kuo said that these MacBook models will feature a new design. Kuo did not specify which models these will be, but he...
mac mini macbook pro macbook air

Apple M1 Hands-On Comparison: MacBook Air vs. MacBook Pro vs. Mac Mini

Monday November 23, 2020 3:40 pm PST by
Apple's M1 Macs are out in the wild now, but ahead of the holidays, you might still be trying to figure out which one to pick up, either for yourself or as a gift for someone else. We've got all three of the new Macs available, so we thought we'd give MacRumors readers a hands-on overview of each machine in our latest YouTube video. Subscribe to the MacRumors YouTube channel for more videos. ...
iPad Pro 5G and Mini LED feature

Rumored 2021 High-End iPad Pro May Feature 5G With mmWave Support

Thursday November 26, 2020 2:14 am PST by
Apple's rumored high-end iPad Pro models to be released next year will be 5G-enabled with mmWave support, according to sources cited by industry publication DigiTimes. Multiple rumors have suggested Apple is planning to release a high-end 12.9-inch iPad Pro with a mini-LED display next year, with the possibility that there will be an 11-inch mini-LED model too, but details beyond that have...