Apple Pay hasn’t lived up to its potential
The new technology allows consumers to pay for items by holding their iPhone or iPad up to a reader. It’s incredibly convenient, quick, and secure. And unlike a credit card, Apple Pay never shows your account details during a transaction. Apple also plans to add online payments to Apple Pay in the future.
The new technology has yet to catch on with brick-and-mortar retailers. While Apple claims that more than four million locations use Apple Pay, this number still needs to grow. This technology is not accepted at Wal-Mart, Target, Gap, and other large chains. However, Apple Pay is still popular with consumers.
While the technology is a big step forward, it must convince consumers of its worth before it becomes a viable payment solution. Many consumers are used to using plastic cards, and they don’t need a particular device. But Apple Pay must convince consumers that it’s more convenient than plastic cards. And they should also start preferring shops that accept Apple Pay to those that don’t.
While Apple Pay has yet to impact grocery stores significantly, its adoption by a few stores is encouraging. So far, it’s been accepted at CVS, Trader Joe’s, Petco, Walgreens, and McDonald’s. But CVS, Best Buy, and Walmart need to implement it. Instead, they’re waiting for another system to take its place.
Apple Pay still needs to meet its potential at grocery stores, according to data compiled by TXN. The top users are Whole Foods Market, Starbucks, and pharmacy operators. These five stores in the US have more than 1% of credit card transactions.
However, the network that Apple Pay is building is more extensive than any other mobile payments platform, including retailers and devices. As more stores adopt the technology, it will become a popular payment option for many users. However, it will only become mainstream for a while.
While technology streamlines our lives and wallets, there are still a few challenges. One problem is that some point-of-sale terminals must be compatible with contactless payment systems. This can lead to a bad experience and frustration.
Apple is gearing up to enter new markets in Asia, Europe, and the Americas. The company has enlisted a broad coalition of financial service providers to help launch Apple Pay in these regions. The company will likely turn to preferred partners in these new markets, including MasterCard and Visa. However, it will only be able to succeed in these countries once it gets more iPhone users to use its technology in stores.