• Adoption of Apple Pay Slowing Down; Service Has More Gen X Users than Millennials



    A study from the folks over at Phoenix Marketing International claims that Apple Pay is still attracting new users after its launch with a recent bump in Gen X card holders. Despite the growth, though, Apple Pay appears to quickly be reaching a plateau.

    Phoenix Market’s Director of Card Performance Research, Greg Weed, said that Apple Pay is being used by 14% of households with eligible credit cards. For a payments service that is only one year old, the statistic is quite impressive but the recent analysis shows a steep decline in adoption as the payment service enters its second year. Apple Pay reached 11% of credit card households just four months after its release, meaning the service only gained 3% of its users since February. It should be noted that this data comes from a sampled pool of 15,000 consumers that were polled over the past year.

    Although Apple Pay did enjoy some growth over the past few months, the service mainly saw an uptick in usage rates from Gen Xers, a demographic which consists of consumers between the age of 33 and 48. When the service was first released, only 15% of Gen Xers signed up for Apple Pay but Weed’s recent numbers found that the number has since increased to 23% as of September. Overall, Gen X users accounted for 48% of all Apple Pay users heading into the fourth quarter with Millennials, a demographic which accounts for people between the ages of 18 and 32, make up a bulk of the remainder at 42%. Millennials also exhibited the highest usage rates with roughly 26% of users turning to Apple’s service for their payment needs.

    According to Weeds, credit cards dominate Apple Pay and account for roughly 86% of all of the cards that are linked to Apple’s mobile payment solution. Debit cards come in second with a 49% share while prepaid cards account for another 22%. The data claimed that 79% of Apple Pay users said they completely replaced contactless plastic credit and debit cards with an iPhone and Apple Watch – a number which is up from 51% in July and 53% in February.

    As Apple continues to work on expanding Apple Pay, we’ll have to see how the payment solution grows. Given the competition in the market, it seems that Apple is the most likely to succeed, we’ll just have to be patient.

    Source: Phoenix Marketing
    This article was originally published in forum thread: Adoption of Apple Pay Slowing Down; Service Has More Gen X Users than Millennials started by Akshay Masand View original post
    Comments 18 Comments
    1. HovikGas's Avatar
      HovikGas -
      The shares of card types don't add up... How can credit cards make up 89%, debit 49%, and prepaid 22%? That equals 160%! I'm assuming you meant that 89% of users have at least 1 credit card linked, 49% have at least 1 debit, and 22% at least 1 prepaid? Only in this case could you then have overlap in users linking both (a) credit card(s) and debit card(s), or all 3...
    1. novadam's Avatar
      novadam -
      I'm not surprised. Gen X is more financially established than millenials (as a group).
    1. TexasDeltaSig's Avatar
      TexasDeltaSig -
      EVERYWHERE I go can use a debit card. Maybe like 3 places I shop can use Apple Pay. When it's more available I'll use it more.
    1. Nuff Said's Avatar
      Nuff Said -
      Apple and their proprietary bs. Apple Pay is hardly compatible anywhere, not to mention a lot of banks still haven't adopted it. Anyone who completely replaced their actual credit cards is a lie because Apple Pay hardly works anywhere.
    1. wamoinc's Avatar
      wamoinc -
      I think adoption is slowing down because retailers are not getting on board. Why take the time to set up apple pay if you can't use it anywhere. All the banks in the market could jump in on Apple Pay and it wouldn't matter. The retailers are bottle-necking the whole thing. Store are having a hard enough time getting up to speed with the new chipped cards, that I think it will be awhile before Apple Pay, or really any of the mobile payment methods are used.
    1. WHUDS's Avatar
      WHUDS -
      I'm older than both. My wife and I discussed this and we rarely lose our wallets but our phones? They can be left or stolen. Using a phone to pay is just something we are not interested in. In fact, while we really like Iphones, using a lot of the features seem gimmicky to us so we are happy with the performance just don't care about some of the features. Both of us have Iphone 6
    1. wtbman's Avatar
      wtbman -
      Quote Originally Posted by Nuff Said View Post
      Apple and their proprietary bs. Apple Pay is hardly compatible anywhere, not to mention a lot of banks still haven't adopted it. Anyone who completely replaced their actual credit cards is a lie because Apple Pay hardly works anywhere.
      You apparently don't know what you are talking about. Apple Pay uses NFC which is a standard and is not Apple proprietary. Samsung Pay, Android Pay and all the others will be able to use the same NFC readers at the point of sale. It is in everyone's best interest for all of the competing payment providers to gain traction so that NFC becomes more ubiquitous. On the other hand CurrentC can just die because it is a flaming pile of excrement.
    1. wtbman's Avatar
      wtbman -
      Quote Originally Posted by WHUDS View Post
      I'm older than both. My wife and I discussed this and we rarely lose our wallets but our phones? They can be left or stolen. Using a phone to pay is just something we are not interested in. In fact, while we really like Iphones, using a lot of the features seem gimmicky to us so we are happy with the performance just don't care about some of the features. Both of us have Iphone 6
      Part of the problem with ApplePay adoption is that people don't understand how it works. If you lose your phone NOBODY is going to be able to use your credit card. You must use your fingerprint in order to perform a transaction so it is useless to a thief. Bonus points if you use touch id to unlock your phone, nobody will get access to your stuff.

      Compare that to losing a wallet: Lost ID, Credit cards are free game for crooks, Checks, Cash, all gone.
    1. steve-z17's Avatar
      steve-z17 -
      I use Apple Pay all the time, there's tons of places that use it! My Credit Union is linked to AP which is awesome! People just don't know what places have it because it's not always advertised in the store or at the bank/credit union.
    1. Sage I's Avatar
      Sage I -
      The places that are setup to use contactless payments here on Hawaii Island are few but when businesses got their card readers setup for nfc payments I'm so stoked to use my apple watch to pay... A woman working petco saw me use my watch to pay and she thought it was a scary concept, she said "That's scary, what if you take off your watch and someone gets a hold of it? Then they can buy things with your watch." I took off my watch and showed her how it wouldn't let me do apple pay after removing it unless I type in my passcode....
    1. PCYoda's Avatar
      PCYoda -
      I used Apple Pay for the first time the other day. It was funny because the cashier was looking at me like "what are you doing?" and even said "wow, that's the first time I've seen anyone use that." In some ways, I almost felt self-conscious doing it, I know that's silly, but I know a few other retailers I've gone to have offered it and I've still reached for my wallet anyway, only reason I didn't this time was because I didn't want to dig into my backpack to grab my wallet since I was out biking. It worked like a charm though, I'm thinking I probably should start using it more.
    1. wtbman's Avatar
      wtbman -
      Quote Originally Posted by PCYoda View Post
      I used Apple Pay for the first time the other day. It was funny because the cashier was looking at me like "what are you doing?" and even said "wow, that's the first time I've seen anyone use that." In some ways, I almost felt self-conscious doing it, I know that's silly, but I know a few other retailers I've gone to have offered it and I've still reached for my wallet anyway, only reason I didn't this time was because I didn't want to dig into my backpack to grab my wallet since I was out biking. It worked like a charm though, I'm thinking I probably should start using it more.
      I know what you mean. It was a bit awkward when I used the 7-eleven rewards card from wallet on my apple watch. I pulled up the barcode and reached my arm out toward the clerk and told her to scan my watch and she instinctively put her hand out under mine thinking I was going to give her some change. I then explained what I was doing and she made some reference about Diçk Tracy. I went in a few days later and again instinctively she put her hand out to catch the "change" and then remembered the interaction we had the other day. Another time I used the Apple Watch to pay at Walgreens and the clerk didn't bat an eye lash.

      It's fun to see people's reaction at this new technology. The clerk's reactions vary from blank stares to disbelief to "hey that's awesome!"

      Before Apple Pay I attempted to use Google Wallet on my Android phone and it was hit and miss whether it would work so it would be awkward when it didn't work and gave me anxiety about even trying again. At least Apple got it right and it "just works".
    1. PCYoda's Avatar
      PCYoda -
      I haven't tried the Apple Watch thing yet (I don't own one), but I do enjoy the convenience of it. I just wish more places would adopt it. I left my wallet up on my desk today, in fact, and I went down to the corner store to get a snack and a soda and they didn't take Apple Pay, so I just put the stuff back and walked out. I walked a little further up the block to Walgreens rather than going back into the office to retrieve my wallet. I think the more I use it, the more I'll get used to it, and the more I get used to it, the more I'll want to give my patronage to vendors that accept it.
    1. bmwraw8482's Avatar
      bmwraw8482 -
      Quote Originally Posted by PCYoda View Post
      I haven't tried the Apple Watch thing yet (I don't own one), but I do enjoy the convenience of it.
      If you like Apple Pay on your phone you'd love it on the watch. It's actually easier and seems quicker to me. Of course, you have to get that watch first
    1. vinaygoel2000's Avatar
      vinaygoel2000 -
      Quote Originally Posted by bmwraw8482 View Post
      If you like Apple Pay on your phone you'd love it on the watch. It's actually easier and seems quicker to me. Of course, you have to get that watch first
      I just can't see myself shelling a $1,000 on an ugly watch just for convenience.
    1. Sage I's Avatar
      Sage I -
      Quote Originally Posted by vinaygoel2000 View Post
      I just can't see myself shelling a $1,000 on an ugly watch just for convenience.
      Not sure why you threw out the 1000 price tag when 350 is the starting price... The one I shelled out 1,200 for is definitely not ugly either, all black stainless steel, it's beautiful...
    1. vinaygoel2000's Avatar
      vinaygoel2000 -
      Quote Originally Posted by Sage I View Post
      Not sure why you threw out the 1000 price tag when 350 is the starting price... The one I shelled out 1,200 for is definitely not ugly either, all black stainless steel, it's beautiful...
      Coz the one I would want is $1,000. 42mm stainless steel link bracelet.

      This was $250: https://flic.kr/p/skn3hB
    1. novadam's Avatar
      novadam -
      between Apple Pay and places that have payment apps (Dunkin donuts, Starbucks, Chop't, etc), I rarely need my wallet anymore. I'm in the DC metro area, so maybe there's a higher store adoption rate around here, but it's in most places I go (Apple Pay, that is).
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