According to a new ITG Investment Research Report on Mobile Payments, Apple Pay is seeing very impressive early adoption numbers.
Apple’s new mobile payment service was responsible for one percent of digital payment dollars spent during the month of November. Square and PayPal are currently still in the lead, which respectively captured 18 and 78 percent of all digital payment dollars in November.
The report notes that Apple Pay has been showing strong momentum given that it is only available on Apple’s latest devices, it is supported by a limited number of merchants, and it is only available in the United States.
“Apple Inc.’s share of the mobile payments space shot to 1.7% from its launch on Oct. 20 through the end of November, putting it on the same playing field as Google Inc.’s veteran Wallet, according to industry intelligence company ITG.
Google’s three-year-old mobile Wallet still holds a slightly bigger 4% share of the market, but ITG analyst Steve Weinstein said Apple Pay users are more engaged, which he says signals the potential of the mobile payments app as more users upgrade to compatible iPhones.”
The report notes that customers use Apple Pay on multiple days of the week, averaging 1.4 times per week. The service is currently being used the most at Whole Foods, which captured 20 percent of all Apple Pay transactions. Walgreens came in second place with 19 percent of transactions, and McDonald’s came in third place with 11 percent of all transactions in the month of November.