March 11, 2015
After the recent Apple event, some new statistics have emerged that provide further evidence of how Apple Pay has been successful in the mobile payments space. Since its launch, Apple Pay has become available at more than 700,000 locations, including more than 2500 banking locations. Coca-Cola is now supporting Apple Pay at 40,000 vending machines, and the company has promised to bring Apple Pay across 100,000 vending machines by the end of this year.
Apple Pay has gained new partners such as the federal government, which has enabled the use of Apple Pay in national parks. USA Technologies is also a new partner that is allowing the use of Apple Pay in vending machines, parking meters, and laundry machines. The Marriott Group of hotels have also adopted Apple Pay, starting with 11 hotels in the U.S..
The updated Apple Pay page shows substantial growth in the number of banks, merchants, and apps that support Apple Pay. 90 US banks now support Apple Pay, and it can now be used for in-app payments in 58 apps, and in-store payments across 47 merchants. Considering these numbers, Apple Pay has clearly made huge advances in the U.S. In our last update in December of last year, we reported that Apple Pay’s support was at around 31 banks and 25 apps. With the latest figures, the number of banks have tripled and the number of apps have increased by more than two fold within a span of around 2 months. Apple Pay has more than tripled the number of major U.S. merchants in only 5 months (i.e. from 15 to now 47).
Apple recently announced the Apple Watch, which has the capability to allow NFC based contactless payments. The new smartwatch was officially announced at the recent Spring Forward event.
We had earlier reported how Apple Watch will present the opportunity to add 125 million plus Apple Pay users. Apple’s mobile payments service will work on the smartwatch as long as the device is unlocked with a passcode or through an iPhone. Users can either enter a password on the smartwatch itself or use TouchID on their iPhones in order to unlock the smartwatch. When Apple Watch was announced back in September last year, it was mentioned that Apple Watch would also work with some older iPhone models such as iPhone 5, iPhone 5S, and iPhone 5C.
The global market for mobile payments has been forecasted to reach $720 billion worth of transactions by 2017, according to Gartner. Apple Pay is clearly demonstrating its capability to capture a substantial portion of this huge opportunity.