Apple Pay will Succeed and Fail
I am betting that a popular topic of discussion throughout 2015 will be uptake of Apple Pay. Pundits will either sing its praises due to the speed of adoption or preach its failure due to the lack of momentum, so what should we believe?
Success will probably be aligned to the speed of adoption from consumers in comparison to the other mobile payment solutions. Brian Roemmele has reported that Apple Pay started with about 10% of iPhone 6 users initializing the service which has now grown to over 20%. In one example Apple Pay usage has broken the record at Macy’s for NFC usage in a single day.
Failure will be measured by the fact that in the US there are only 300,000 merchants able to accept Apple Pay, which represents about 3% of merchant terminals. They will also talk about merchants reluctance to spend the money to upgrade their terminals and promote a form of payment that carries an interchange fee on every transaction.
The reality is that Apple Pay was never going to be a fast disruptor of payments with mass marked adoption, it is just another way for consumers to transact. Considering the demographic of the Apple user you would have to think that Apple Pay will appeal to the affluent consumer and as data from Brian Roemmele’s research already shows that Apple Pay users spend more money more often it is probably a payment solution that your smarter retailers will be willing to support.