Apple Pay has entered the market with much fanfare. It is already showing scalable adoption across prominent merchants. Apple Pay already represented around 1% of all Whole Foods transactions in just 17 days post Apple Pay’s launch on October 20th. McDonald’s also noted that an impressive 50% of its tap-to-pay transactions, since the release of iOS 8.1, came from Apple Pay.
We really think that Apple Pay is revolutionary and it is going to be game changing in the mobile payments space. Even 90 wallets launched before, hundreds of payment startups and banks are supportive of the simplified system. Apple Pay is built through great relationships with retailers and partners. Using iPhone 6, one can make payments using combination of NFC antennae, Touch ID, secure element and PassBook. This is what makes it seem radically unique and different from others.
Apple recently announced the addition of more merchants to its expanding list. Some of these include Associated Food Stores, Shaw’s Supermarkets, Jewel Osco, Harvey’s, Winn-Dixie, BI-LO, Albertson's and Instacart. Here is an infographic to show how Apple Pay stands against other wallet providers:
They have the best chance as compared to anybody else right now to educate customers, have them sign-up and to improve their product and bring Apple 2.0.
According to us, Apple Pay has a very good headstart and their strategy of working with card networks and banks seems to be working. Banks like Chase and Bank of America are heavily promoting Apple Pay (you must have got a couple of emails by now). All this hype and promotion by banks will bring in a large subset (of subscribers to Apple Pay) of 900 Mn cards-on-file that Apple has. And in this way, with growing consumer traction, more merchants would join the Apple gang sooner or later. In one big stroke, Apple may have solved the chicken-and-egg situation that mobile payments has always faced.