Wary Adoption: Apple Pay Two Years In

Upon its launch two years ago, Apple had hoped Apple Pay, its mobile payment service, would make checkouts easier and eventually replace physical wallets; however, both stores and shoppers have remained wary of mobile payments, with only 13 percent of iPhone users having tried it according to the tech venture-capital firm Loop Ventures. Factors that have limited Apple Pay’s adoption include consumer worries over security, few participating retailers, and Apple’s lackluster marketing.

Apple Pay involves users scanning an image of their credit or debit cards to upload them onto an Apple device. To pay, users hold their mobile device over a contactless pay terminal and verify the transaction with a fingerprint.

Aside from security, which is why 40 percent of customers do not use the service according to tech research firm Creative Strategies, Apple Pay’s largest hurdle to overcome is retailer adoption. Only one-third of stores accept Apple Pay, which includes large chains such as Wal-Mart and Kroeger. Big retailers have had difficulties overcoming the logistical challenges associated with adopting Apple Pay, and even if stores do accept Apple Pay cashiers do not always know how to use it. To address these issues, Apple is working with stores to include Apple Pay in training and petitioning more chains to adopt it. Apple counts Best Buy, Kohl’s, and Starbucks among recent large users.

Despite its slower than anticipated start, Apple is determined to continue pushing for wider use. Adoption rates have fallen far below the $207 billion in transactions it has predicted, but twice as many consumers are likely to use Apple Pay as other mobile pay services. Analysts also predict that with more retailers on board, Apple Pay is on the verge of wide scale adoption. Apple may be about to change the way consumers pay for goods, albeit a little late.

For more, visit The Wall Street Journal

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