Apple Pay Leading the Way in Digital Wallet Usage
Digital wallet transactions have increased steadily since 2015, and with the onset of the Covid-19 pandemic, usage has soared. According to the 2021 Debit Issuer Study, commissioned by Discover Financial Services’ PULSE debit network, “The shift to digital commerce and card-not-present transactions, adoption of contactless and use of debit for money transfers all leaped forward at warp speed.” For debit and credit card purchases and peer-to-peer money transfers, the use of digital wallets has skyrocketed over the years for the big three players: Apple Pay®, Google Pay, and Samsung Pay. Of these three, Apple Pay dominates the digital wallet landscape by commanding the largest market share for mobile payments.
What is Apple Pay and How Does it Work?
Apple Pay is a mobile payment and digital wallet service from Apple, Inc., that shoppers use to make in-store and in-app purchases using an iOS device, or online purchases. It was designed as an alternative to credit cards and debit cards so that customers could use devices like their iPhones or Apple Watches to make payments instead physical cards.
Apple Pay supports most major payment card providers including Visa, Mastercard, and American Express, and most major point-of-sale devices today can process contactless transactions. The technology currently works with these Apple devices: iPhone 6; iPhone 6 Plus and newer; iPad Pro; iPad Air 2; iPad Mini 3 and newer; and the Apple Watch series 1 and newer.
Of all mobile wallets, Apple Pay has taken the lead in online, in-store, and contactless payments. If you don’t already accept Apple Pay at your business, here’s what you need to know so you can benefit from accepting the industry’s most popular digital wallet.
Market Size
A recent survey by Statista notes that during 2020, Apple Pay captured “significantly higher” market share in the U.S. than its competitors, adding that five out of 10 U.S. respondents said that they had used the Apple Pay mobile wallet for an in-person purchase at a retail location between August 2020 and August 2021, and two out of 10 respondents said that they had used it for online purchases.
Apple Pay is available in more than 50 countries and territories worldwide. It’s currently accepted at over 85% percent of retailers in the U.S., including Bloomingdales, Disney, McDonalds, Nike, Walgreen’s, and Whole Foods, as well as vending machines that accept contactless payments. Apple’s mobile-payment system also works with the U.S. federal government to facilitate benefits paid through debit cards, such as Social Security and veterans’ benefits.
By the numbers:
· Apple Pay constitutes 92% of US mobile wallet transactions
· Apple Pay’s user base grew by 66 million in 2020
· Over 48% of iOS users worldwide activated Apple Pay in 2019
Benefits of Accepting Apple Pay Payments
Apple Pay offers a number of benefits to both users and merchants alike. Here are some of the reasons your business can benefit from accepting Apple Pay payments.
· Apple Pay uses Touch ID and Face ID biometric authentication technology to verify the customer’s identity, which greatly reduces the threat of fraud.
· You can attract new customers and reduce cart abandonment by setting Apple Pay as your default payment method.
· Accepting Apple Pay improves the customer checkout experience. For in-store purchases, using Apple Pay is faster than paying with a physical card because customers can quickly and easily pay using touch or facial recognition technology. For online and in-app purchases, customers can avoid filling out a lengthy checkout form and pay with a single click.
· Apple does not send the customer’s actual credit or debit card numbers with the transaction, so your business is not exposed to sensitive data when customers pay with Apple Pay.
· Integrating your system with Apple Pay is easy. If your business already accepts contactless payments, you can start accepting Apple Pay payments right away. If you want to accept Apple Pay on your store’s website, visit Apple Pay for developers.
Accept Apple Pay Payments with Elavon’s Converge Payment Gateway
Elavon’s Converge is a flexible, omnichannel payment gateway that supports all major card types and enables you to accept in-store, online, mobile, and mail order/telephone order (MO/TO) payments. Converge supports Apple Pay, allowing your customers to use their Apple Pay digital wallets for a frictionless checkout experience. Our robust fraud control technology, along with Apple Pay’s built-in security features, ensures that your customers’ debit card and credit card information remain safe and secure.
Our broad range of products combined with world-class customer service and technical support provide you with the tools and solutions you need to scale your business. Call us today to learn more.