Apple Pay Overtakes Starbucks as Most Popular Mobile Payment Platform in the US

Apple Pay has overtaken the Starbucks mobile app to become the most popular mobile payment system in the United States, claims a new report out today.

apple pay
According to eMarketer, ‌Apple Pay‌ became the market leader last year, when 27.7 million Americans used the app to make a purchase. Since then, however, ‌Apple Pay‌ has grown even faster than expected.

In 2019, ‌Apple Pay‌ will have 30.3 million users, or 47.3 percent of mobile payment users. That compares with Starbucks' 25.2 million customers via its mobile app in the same year, representing 39.4 percent of mobile payment users.

"Apple Pay has benefited from the spread of new point-of-sale (POS) systems that work with the NFC signals Apple Pay runs on," said eMarketer principal analyst Yory Wurmser. "The same trend should also help Google Pay and Samsung Pay, but they will continue to split the Android market."

Citing data from Digital Trends, the analysis predicts ‌Apple Pay‌ will be available in 70 percent of U.S. retailers by the end of 2019. In contrast, the Starbucks app has commanded a 40 percent market share of mobile payments for the last few years, but growth potential is limited because it can only be used in Starbucks stores.

Total spending via contactless mobile payments will approach $100 billion this year in the U.S., according to eMarketer. On average, that is equivalent to a user spending $1,545 per year, up more than 24 percent over last year.

Nearly 64 million people (30 percent of all U.S. smartphone users) are expected to make use of mobile payments this year, a 9.1 percent increase over 2018. In terms of demographics, nearly 50 percent of all smartphone users are adults aged 25 to 34, so the growth of mobile payments is expected to be strongest in this age group, although digital wallet use is said to be growing across the board.

"Although a growing number of millennials feel secure using payment apps, virtually all still find credit and debit cards equally convenient," said eMarketer forecasting analyst Vincent Yip. That bodes well for Apple Card, which launched earlier this year. ‌Apple Pay‌ is now in 47 markets and in the June quarter, started adding more new users than PayPal, with monthly transaction volume growing four times as fast.

Related Roundup: Apple Pay

Top Rated Comments

swingerofbirch Avatar
29 months ago
That seems like a weird comparison to make, but as long as it has been made, it actually to me makes Apple Pay sound less popular than I would have guessed.

If I understand this right, only slightly more people use Apple Pay, which is a way of using almost any credit card for any purchase at any location, than use the Starbucks mobile order app at Starbucks cafes.

That means out of the virtually endless places you could use Apple Pay, about the same number use the Starbucks mobile app to pay at a single store.

I don't see that as a winning statistic.


Too bad it’s a credit card, I would defintely indulge in prepaid debit or something
Cause: 24% more spending YoY
I don't think they're referring to Apple Card but to Apple Pay which you can use with virtually any payment method like a debit card or Apple's own Apple Cash.
Score: 27 Votes (Like | Disagree)
joelhinch Avatar
29 months ago
You can use Apple Pay or any other contactless technology at 99.9% of payment terminals in Australia. Essentially all stores, restaurants and cafes. Even trains and busses. How contactless payments are still niche in the US is crazy to think.
Score: 22 Votes (Like | Disagree)
JohnApples Avatar
29 months ago

That seems like a weird comparison to make, but as long as it has been made, it actually to me makes Apple Pay sound less popular than I would have guessed.

If I understand this right, only slightly more people use Apple Pay, which is a way of using almost any credit card for any purchase at any location, than use the Starbucks mobile order app at Starbucks cafes.

That means out of the virtually endless places you could use Apple Pay, about the same number use the Starbucks mobile app to pay at a single store.

I don't see that as a winning statistic.


I don't think they're referring to Apple Card but to Apple Pay which you can use with virtually any payment method like a debit card or Apple's own Apple Cash.
Well, the article states that 47.3% of people are using ApplePay this year, which is nearly half of all users that use any mobile payment option at all. That’s a pretty darn good statistic, especially considering that ApplePay is only available on iPhones.

Starbucks allegedly is used by 39.4% of mobile payment users, so ApplePay is decently ahead of them. Again, consider that Starbucks mobile pay can be used on any smartphone.

Being the number 1 mobile payment solution *and* Having an almost 10% lead over the second-place solution while also only being limited to around 22% of the smartphone market share is pretty impressive.
Score: 18 Votes (Like | Disagree)
deeddawg Avatar
29 months ago

Well, thats odd. I have always been wondering why the US is virtually 10 years behind other countries in this regard.
Short version of why the US didn't move to chip readers sooner is it didn't have much reason to do so. The telecommunications infrastructure allowed for live authentication vs batch processing, so there wasn't the incentive to implement chip+PIN to reduce fraud as there was elsewhere.

More info here: https://www.zdnet.com/article/emv-understanding-why-the-us-migration-didnt-happen-sooner/
Score: 7 Votes (Like | Disagree)
BuffaloTF Avatar
29 months ago

Well, thats odd. I have always been wondering why the US is virtually 10 years behind other countries in this regard. In Europe, the contactless payment was introduced several years ago. Actually, I had my first credit card with a chip instead of magnetic stripe some 10 years ago. In China for example, there is currently no need of POS terminals at all as virtually everything can be paid with WeChat.


Well, small business just need to purchase a POS terminal that is not 10 years old. Not really expensive or difficult to implement.
Speaking from the industy -- We aren't virtually behind anything. We were the first country to launch contactless payments in 2004 while everyone else was trying to figure out the chip. So we had to deal with the tin-foil hats for the rest of you. About how people were going to steal your credit card from a mile away. Complaints to remove PayPass and PayWave from cards. We had a huge ramp up for about 5 years, then a slowing down (and even ripping out) for the next 5 years where the loud mouth minority got their way.

Then there's also the scale of what needs to be done. Card by card, store by store. There's 330 million Visa cards in the US... 771 million in the rest of the world combined. Mastercard is 231 vs 644. AmEx is 54 vs 60. That's nearly 50% of the whole pie that needs to be replaced... for a second time. And as of calendar close 2018, we were 50% done. Fueling the slow pace this time around is that as soon as its adopted, fraud responsibility falls on the merchant. Previously, someone uses a fake card, merchant gets paid the full amount; the credit card issuer eats the loss. Not anymore.

Anyway... Visa and Mastercard has mandating that all terminals must support contactless -- for example, 1 January 2020 the entire EU must support it or they'll charge merchants larger fees for using outdated terminals. In the US it'll be by market segment.

In relation to WeChat. Real-Time Payments are now a thing here. Banks are rolling it out now, first to corporates.
Score: 5 Votes (Like | Disagree)
OneMike Avatar
29 months ago
Interesting. I didn’t know that Starbucks had a system.
Score: 4 Votes (Like | Disagree)

Popular Stories

maxresdefault

Review: M1 Max MacBook Pro After Three Months

Wednesday January 19, 2022 11:30 am PST by
It's now been a few months since the M1 Pro and M1 Max MacBook Pro models launched in October, and MacRumors video editor Dan Barbera has been using one of the new machines since they debuted. Over on the MacRumors YouTube channel, Dan has shared a three month review of his MacBook Pro to see how it has held up over time and how it's changed his workflow. Subscribe to the MacRumors YouTube ...
airpodsinear 1

AirPods Save Woman's Life With Feature Everyone Should Know

Friday January 21, 2022 2:13 am PST by
Apple's AirPods have been credited with saving a woman's life after a potentially fatal fall, People reports. When a 60-year-old florist in New Jersey tripped and hit her head in her studio, she lost consciousness and awoke heavily bleeding. With nobody around to call for help, she realized she had her AirPods in, and used a "Hey Siri" command to call 911. An operator was able to stay on the ...
iphone se 2020 top

New iPhone SE Likely to Launch in April Based on Production Timeframe

Wednesday January 19, 2022 6:44 am PST by
Apple suppliers will begin producing display panels for the third-generation iPhone SE this month, with final assembly of the device likely to start in March, according to information shared by display industry consultant Ross Young. Based on this production timeframe, Young believes the third-generation iPhone SE is likely to launch in the second half of April, or perhaps in early May at...
iphone 13 earpods

Apple to Stop Including EarPods With Every iPhone Sold in France From Next Week

Friday January 21, 2022 3:21 am PST by
Apple will no longer include EarPods with every iPhone sold in France, starting on January 24, according to a notice posted by a French carrier (via iGeneration). Apple was previously required to include EarPods in the box with the iPhone due to a French law that required every smartphone sold in the country to come with a "handsfree kit," but the law has now been changed in favor of reducing the ...
Spring 2022 Apple Products Feature

New iPad Air, Macs, and iPhone SE With 5G Likely to Be Announced at Apple Event This Spring

Thursday January 20, 2022 8:32 am PST by
Earlier this week, Bloomberg's Mark Gurman tweeted that Apple "will be holding a spring event" to announce a new iPhone SE and other hardware. In a recent edition of his newsletter, Gurman said the event is likely to occur in March or April. Gurman did not elaborate on what "other hardware" will be announced at Apple's purported spring event, but rumors suggest at least four products are...
appleeducation

Apple's US Education Store Now Requires Institution Verification to Buy Discounted Products

Wednesday January 19, 2022 2:22 am PST by
Apple is now requiring that customers in the United States verify that they're active students, teachers, or staff members at an educational institution in order to access education discounts on products. Previously, little verification was needed for customers to purchase products through Apple's education store in the United States. Apple's education stores offer models of the iPad and Mac ...
AirPods 3 New Firmware Feature

Apple Updates AirPods 3 Firmware to Version 4C170

Tuesday January 18, 2022 11:46 am PST by
Apple today released a new 4C170 firmware update for the AirPods 3, an update from the prior 4C165 that was made available in December. Apple does not offer details on what's included in new firmware updates for the AirPods‌, so we don't know what improvements or bug fixes the new firmware brings. There is no standard way to upgrade the ‌AirPods‌‌ software, but firmware is...
appleprivacyad cleaned

iOS 15 Patched Security Hole That Potentially Exposed Users' Private Apple ID Information to Third-Party Apps

Thursday January 20, 2022 3:32 am PST by
Apple patched two significant security vulnerabilities when it released iOS 15 that could have potentially exposed users' private Apple ID information and in-app search history to malicious third-party apps and allowed apps to override user Privacy preferences, Apple has revealed in a recent support document update. With most iOS, macOS, tvOS, and watchOS updates, Apple provides a list of...
apple watch series 7 aluminum colors yellowbg

Apple Watch Charging Bug Fixed in watchOS 8.4 Release Candidate

Thursday January 20, 2022 4:01 pm PST by
The watchOS 8.4 release candidate that was seeded to developers and beta testers this morning addresses an ongoing bug that could cause some Apple Watch chargers not to work properly with the Apple Watch. Back in December, we reported on a growing number of charging issues that Apple Watch Series 7 owners were facing. Since watchOS 8.3, there have been a number of complaints about...