Apple Pay Leads Category

by Raymond Pucci 0

Apple’s customer base has a longstanding reputation of being first adopters and heavy users of anything Apple, and it turns out that Apple Pay is no different. A Piper Jaffrey survey of retailers shows that Apple Pay usage far surpasses other mobile digital payment services.

Apple Pay is the most-requested mobile digital payment service among retailers, according to a recent survey of companies that supply point-of-sale terminals to stores.

Piper Jaffray surveyed 507 vendors of merchant-processing systems. The survey found that 44% of their customers are using or have asked about implementing mobile digital payment systems.

Of those merchants, 67% desired Apple’s (AAPL) Apple Pay. Alphabet’s (GOOGL) Android Pay and Google Wallet were second with 18%, followed by PayPal (PYPL) (8%) and Samsung Pay (7%).

Merchants who accept tap-and-pay services typically are able to accept multiple digital wallets, Piper Jaffray analyst Gene Munster said in a report Wednesday.

“It is telling that PayPal, who has been the leader in digital payments, so significantly under-indexed Apple Pay and Android Pay,” Munster said. “PayPal did announce recently at Mobile World Congress (MWC) that it would be enabling NFC payments, though the timeline was not disclosed.”

Through February, 2016, Apple Pay is accepted at millions of retail locations in the US, Canada, UK, and Australia. Apple Pay recently launched in China, and China Merchants Bank reports that 3 Million cards were activated in the first two days. Banks and other card issuers are jockeying to become “top of wallet” as mobile payment services continue on a high growth path.

Overview by Raymond Pucci, Associate Director, Research Services at Mercator Advisory Group

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