November 11, 2014
Apple’s foray into the mobile payments space is less than a month old and it is already making a mark on a number of merchants’ numbers. Apple Pay has grabbed the attention in the NFC mobile payments space since its launch. It had already witnessed a million payment card activations within the first 72 hours.
Apple Pay’s impact at Whole Foods:
As per estimates by Mike Dudas, co-founder and CRO of Button, Apple Pay may have represented around 1% of all Whole Foods transactions in the past 17 days since Apple Pay’s launch on October 20th. As per the new estimates, the 150,000 transactions made via Apple pay would eventually account for 0.91% of all transactions at their stores in the 17 day period. The following tweet by Mike provides more insights:
This is incredible because within 2.5 weeks, achieving this kind of transaction volume is amazing. Are these good signs for mobile payments? This is like real authentic Italian pizza at an Italian restaurant, not frozen pizza.
John Pleau, Business Development Director at Merchant Warehouse, posted the following on LinkedIn about an official Apple Pay usage survey at McDonald’s centre at Seattle airport:
Meanwhile, Brian Roemmele had this to say on Apple Pay:
Apple Pay is about: speed, efficiency, convenience, trust, security, fashion, ego, lust and fun.
Recently, at the Mobile Women to Watch 2015 Summit, a Walgreens executive mentioned that in-store traffic at the chain has doubled since their integration with Apple Pay. Walgreens witnesses 55% of its traffic coming from mobile. Walgreens has also integrated its loyalty program with Passbook and has seen its position jump from 66 to 8 in the app store rankings. Walgreens is benefiting from Apple Pay acting as a user friendly mobile application simplifying the user payment experience at Walgreens’ point-of-sale systems.
The following illustration highlights how Apple Pay stands against competitors and where it could head in the near future:
As per a survey conducted by Retale, 89% of Apple users are more likely to make purchases via their devices. It remains to be seen whether Apple Pay could reach a significant number in transactions in this quarter but in 2015 it could actually enable more than $2 billion in sales easily if you do the math (24 mn additions this quarter from the chart above). It could be much more if it explodes. And I am still not talking about foreign markets such as Canada, Australia, Part of Europe, Japan, Korea and of course China.