Apple Pay is one of the biggest names in the mobile wallet landscape. Some would say it's completely changing the world of payment processing, but that's not exactly true. According to research from PYMNTS.com, while Apple Pay is technically growing at a promising rate, its users aren't staying.
Apple's situation looks good on the surface. As of March 15, 23 percent of consumers said they'd tried the app. That's up from the 17 percent in October 2015. Receiving new users is good for a mobile app in general, but Apple Pay needs people to remain with the platform for it to thrive. Unfortunately for the tech giant, it doesn't seem like users are sticking around. Apple Pay transactions fell 24 percent compared to the previous quarter.
The app didn't make a big enough splash for some individuals. Twenty-one percent of users admitted they forgot to use Apple Pay when they could. This might imply a failure in advertising or that not enough retailers accept mobile payment solutions. However, it also might mean Apple Pay just isn't innovative enough to get users to shelve their credit and debit cards for good. As of March, 46 percent of iPhone users said they were fine with cash, credit, debit and other forms of payments. That's almost 10 percent higher than reports from October 2015.
Will Apple Pay take off?
Changing the world of payments is a difficult process. Even with Apple's success in innovating personal computers, music players and smartphones, payment processing is an entirely different issue to grapple. Not only are there a wide number of factors to consider in terms of the technology – banks and money transfers, global payments and more – Apple has to compete with the tried-and-true cash and card methods. Ultimately, consumers have to prefer paying with their phones to paying with a card for Apple Pay to take off. As PYMNTS.com's research indicated, this doesn't seem to be happening.
That's why it's important for businesses to accept a wide variety of payment methods. Apple Pay has yet to be adopted across the globe, so organizations operating worldwide need a variety of solutions. Plus, although rumors say the app will be available online by the end of the year, according to Re/Code, users still have to download the app and remember to use it. Since doing so isn't much more convenient than pulling out a physical wallet, consumers will likely stick with their old traditional payment choices.
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