Does It Pay to Use Apple Pay?

Despite aggressive marketing by the tech giant, it appears as though Apple Inc.’s mobile payment system has gained little traction with retailers or consumers. An investigation conducted by Reuters found that only about a quarter of the top 100 retailers accept Apple pay. By contrast, two-thirds of the companies said that they have no intention of accepting the online payment platform at all.

“What is the return on investment? The return is negative,”

said Maureen Elworthy, director of treasury for Ahold USA, which operates Stop&Shop and other supermarket chains.

Accepting mobile payment systems can be costly to retailers because doing so requires the integration of additional back-end payment processing systems. Meanwhile, a survey of iPhone6 users found that only 6 percent had used Apple Pay more than once, in part due to the very limited number of retailers that accept it. A handful of major retailers have also announced plans to create a joint mobile payment system to compete with that of Apple, further limiting both the potential profitability of the system and its utility to consumers.

 

Read more here – “Exclusive: In ‘Year of Apple Pay’, Many Top Retailers Remain Skeptical,” (Nandita Bose, Reuters).

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