August 24, 2016
Apple Pay Gets Lump of Coal in Stocking
Dec. 7, 2015
The dichotomy between mobile payments in the online environment vs. at the point-of-sale were thrown into stark contrast after the numbers were tabulated for the Thanksgiving-to-Cyber Monday weekend. Online sales broke records last week and growth in the number of consumers shopping from their mobile devices was cited as part of the reason . In-store mobile payments, however, are down this year from the modest numbers they showed last year, according to one research firm.
San Francisco-based InfoScout said consumers used Apple Pay in eligible transactions at participating merchants only 2.7 percent of the time compared to 4.9 percent last year. The report has prompted some media outlets to use the words “flop” and “troubled” in stories about Apple Pay. Android users used Android Pay, Samsung Pay and other mobile wallets even less (2 percent of the time), but those mobile payment systems have not been available as long as Apple Pay.
InfoScout did say that the iPhone 6, which was the only device on which Apple Pay was available, was relatively new during last year’s holiday season and, as such, a higher percentage were in the hands of early-adopter types who might be more inclined to use a service like Apple Pay. And, the jury still is out on the relatively new Android solutions.
While the InfoScout numbers predicted dire ends for mobile solutions at the POS, a recent eMarketer report suggests the industry has never been stronger and the myopic media needs to look past the most recent report. The research firm last week said proximity mobile payments in the U.S. will triple from $8.71 billion this year to more than $27 billion by the end of 2016. By 2019, eMarketer predicts U.S. consumers will be spending more than $210 billion annually by tapping mobile devices at the POS.