Cook: 2015 ‘Year of Apple Pay’
Feb. 2, 2015
In remarks he made during Apple’s quarterly earnings call last week, Apple CEO Tim Cook said Apple Pay now accounts for more than two thirds of all dollars spent on in-store contactless payments across the three biggest U.S. card networks and called 2015 “the year of Apple Pay.” In response to a question from a Piper Jaffray analyst, he also said the card-not-present side of Apple Pay that facilitates in-app payments could evolve to be even more important—in certain places.
“The contactless payment and the in-app are both important,” Cook said. “I think they are both huge opportunities. I think they’ll play out differently in different geographic regions as to which one is larger than the other. The mix of those things will change over time as more and more commerce flows across apps.”
Cook provided anecdotal evidence for Apple Pay’s popularity by highlighting numbers at two prominent U.S. retailers: at Panera Bread, 80 percent of mobile payment transactions are through Apple Pay and Whole Foods has seen a 400 percent jump in mobile payment transactions since it was implemented in its U.S. stores.
While Apple Pay seems to be succeeding, a CardNotPresent.com feature article says several challenges remain. iPhone 6 adoption and the relatively small number of retailers upgraded for NFC acceptance will be issues in the near term, with Durbin routing considerations a potential problem as well.