Early adoption Apple Pay is considerably strong, according to new research released Monday by ITG. Based on early trends since its 20 October launch, the research firm has determined that Apple Pay has the ability to significantly transform the mobile payment space.
The ITG Mobile Payments report, which uses data from the ITG Investment Research proprietary consumer panel, found that Apple Pay was responsible for 1% of digital payment dollars in the month of November. This is a strong showing, considering that the service is only available to Apple customers with the newest hardware and it is currently supported by a relatively limited list of merchants. In comparison, Google Wallet, which launched in 2011, accounted for only 4% of digital payment dollars in the same month.
Apple Pay could pose a major threat to market leader PayPal’s current dominance of the mobile payment space, according to Steve Weinstein, senior internet analyst at ITG Investment Research. PayPal has significant infrastructure barriers, including a challenging relationship with payment counterparties and the lack of biometric capability. Weinstein believes that it will be difficult for PayPal to match the ease of use and consumer appeal of Apple’s solution.
Key research findings
60% of new Apple Pay customers used Apple Pay on multiple days through November, suggesting strong customer engagement. In comparison, New PayPal customers used the service on multiple days during the same time period just 20% of the time.
Apple Pay customers used the service roughly 1.4 times per week and used Apple Pay at the same merchant for future transactions roughly 66% of the time.
Upon adoption of Apple Pay, the average consumer uses the service for approximately 5.3% of all future card transactions and 2.3% of all future card dollars spent.
Top 5 Apple Pay retailers:
- Whole Foods
- Panera Bread
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