Apple Pay Adoption Hits 75% of iPhones in the U.S., Says Report
According to an article published by The Wall Street Journal, Apple Pay adoption has now hit 75% of iPhones in the U.S., a number that has climbed up from only 10% in 2016 and 20% in 2017.
Apple says that 90% of retailers across the U.S. now take Apple Pay, whereas only 3% of retailers accepted contactless payments when the service was introduced.
The more places that accept Apple Pay, the more value the service provides, and the more people upload their credit and debit cards to the Wallet app.
The activation rate of Apple Pay has begun to resemble the classic trajectory of tech adoption, which suggests that “what is now a tiny slice of Apple’s pie can get much bigger.” Apple Pay is also the top payment app for teenagers, according to investment firm Piper Sandler.
“People love Apple Pay,” Loup Ventures analyst Gene Munster said in a recent interview.
The fees Apple collects from banks whose cardholders use Apple Pay amount to less than 1% of the company’s overall revenue, according to Mr. Munster’s estimates, but Apple generates so much profit from iPhone sales that even billions of dollars would be a rounding error. Apple Pay exists to improve the iPhone experience.
Apple says the ultimate goal for Apple Pay is the option for its users to replace their physical wallet with a secure, private, and easy to use mobile wallet.