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
56 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
56 months ago
20$ for ramen ? Marketing at Apple just lose touch with reality :D
Score: 12 Votes (Like | Disagree)
DaveOP Avatar
56 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
56 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
56 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
56 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)

Popular Stories

iOS 16

iOS 16.3 Now Available for Your iPhone With These 4 New Features

Friday February 3, 2023 1:13 pm PST by
Apple released iOS 16.3 in late January following nearly six weeks of beta testing. The software update is available for the iPhone 8 and newer, and while it is a relatively minor update, it still includes a handful of new features, changes, and bug fixes. Below, we've recapped new features in iOS 16.3, including support for physical security keys as a two-factor authentication option for...
magsafe duo perspective feature

Apple Releases New MagSafe Duo Firmware

Tuesday February 7, 2023 12:41 pm PST by
Apple today released updated firmware for the MagSafe Duo charger that is designed to work with the Apple Watch and MagSafe-compatible iPhone models. The new firmware is version 10M3063, but in the settings app, you'll see a 256.1067.0 version number, up from 186.0.0.0. The MagSafe Duo was first released in 2020 alongside the iPhone 12 models, and it has not had a firmware update before....
oneplus 11 3

Camera Comparison: Apple's iPhone 14 Pro Max vs. OnePlus 11 5G

Tuesday February 7, 2023 10:11 am PST by
Chinese smartphone company OnePlus today announced the official debut of the OnePlus 11 5G, which is the company's latest flagship smartphone. The device was already announced in China, but today marks the global launch so we thought we'd compare the OnePlus 11 5G to the iPhone 14 Pro Max to see how the camera measures up. Subscribe to the MacRumors YouTube channel for more videos. Apple's...
HomePod 2 White and Midnight Feature Purple Orange

Apple Releases tvOS 16.3.1 and HomePod 16.3.1 Software Updates

Monday February 6, 2023 10:13 am PST by
Apple today released new tvOS 16.3.1 and HomePod 16.3.1 software updates, with the software coming two weeks after the tvOS 16.3 and HomePod 16.3 updates were released. According to Apple's release notes for HomePod software 16.3.1, the update includes general performance and stability improvements. Notes for tvOS 16.3.1 are unavailable as of yet, but are probably similar to the HomePod...
iPhone 15 Pro Blue Feature

iPhone 15 Pro 'Buttonless Design' Rumors: Everything We Know

Monday February 6, 2023 7:44 am PST by
The iPhone 15 Pro models will feature a "buttonless design" thanks to additional Taptic Engines, according to multiple corroborated reports, so what do we know about the change so far? Apple analyst Ming-Chi Kuo was first to report that the volume and power buttons on this year's two high-end iPhone models will adopt a solid-state design, similar to the iPhone 7's home button, replacing a...
iPhone 14 Pro Purple Side Perspective Feature Purple

Gurman: Apple Considering New High-End iPhone Alongside Pro and Pro Max

Sunday February 5, 2023 6:07 am PST by
Apple has discussed selling a new top-of-the-line iPhone alongside the Pro and Pro Max models in 2024 at the earliest, according to Bloomberg's Mark Gurman. Based on this timeframe, the device would be part of the iPhone 16 lineup or later. In a September 2022 edition of his weekly "Power On" newsletter, Gurman said there was "potential" for an iPhone 15 Ultra to replace the iPhone 15 Pro...
iphone ultra concept daehnert

'iPhone Ultra' Concept Envisions Apple's Rumored Future Top-Tier Smartphone

Tuesday February 7, 2023 5:38 am PST by
Apple has reportedly considered releasing a new top-of-the-line iPhone alongside future Pro and Pro Max models, tentatively referred to as "iPhone Ultra," and one designer has taken it upon himself to envision what such a device could potentially look like. German industrial designer Jonas Daehnert came up with this impressive-looking concept (pictured) by marrying design elements of the...
Apple iPad 10th gen Magic Keyboard Folio Apple Pencil Feature Blue

Apple Could Break an iPad Tradition This Year

Wednesday February 8, 2023 3:13 am PST by
Apple usually releases a new entry-level iPad every year, but the current lineup and rumors for 2023 may indicate that this will be the first year when the company breaks this convention. When Apple introduced the 10th-generation iPad last year, it added the device to the lineup above the ninth-generation model from 2021. As a result, Apple currently sells both the ninth- and 10th-generation ...