More than 43% of global iPhone users have enabled Apple Pay, according to estimates from the venture capital firm, Loup Ventures LLC. This means that Apple Pay adoption reached 43% of iPhone users.
What’s Driving the Boom?
Since its launch in 2014, Apple Pay has continued to gain support from retailers and iPhone users. The Minneapolis-based venture firm based its estimate on survey work, growth in transactions, countries, and banks.
It further estimates that there are currently 383 million Apple Pay users, which is up 21% sequentially and 135% year to year. Loup Ventures believes the burst in adoption likely is due to the digital wallet’s launch of peer-to-peer payments on Jan. 18.
The firm also estimates, based on the number of active countries and number of use cases within those markets, that 12% of Apple Pay users are in the U.S. and 88% of users are international.
One reason why it believes there are more Apple Pay users overseas is because there is greater acceptance on public transportation in China, Japan, the UK, and Russia. Furthermore, it estimates that 24% of U.S. iPhone users have used Apple Pay versus 47% of international users.
Other Reasons for the Spike
In January, Apple announced that 74 of the top 100 merchant in the nation are accepting Apple Pay. Target, Jack in the Box, and Taco Bell are just some of the retailers to recently begin accepting Apple’s mobile payment system.
These top merchants join other national retailers that already support Apple Pay, like Costco, CVS Pharmacy, and 7-Eleven.
What This Says About Digital Wallets
These numbers prove that more people are warming up to digital wallets. People are embracing and understanding the convenience and security they offer.
Apple Pay is compatible with most credit cards and U.S. banks, and loyalty points, rewards and benefits from your cards continue to accrue when you use Apple Pay.
Another great security feature is that receipts are kept in your wallet app when you make a purchase using Apple Pay. Even better, the transaction information is not stored anywhere, and every transaction made on your iPhone, iPad, or Mac requires authentication with Face ID, Touch ID, or your passcode.
When you make a purchase at a physical store, card numbers and your identity aren’t shared with merchants. Finally, if your Apple device is lost or stolen, you can suspend or permanently remove the ability to pay from that device.
What This Means for Merchants
Merchants best serve their customers when they offer them exactly what they want. The world is moving to a more cashless society, and shoppers want many payment options and mobile wallets are just one of them. Merchants that can offer the most ways to pay also opens themselves up to the most sales. In fact, merchants that fail to accept, debit and credit cards, and mobile wallets are actually making their businesses less competitive.
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