How Has Apple Pay Evolved And Where's It Heading Next?

The analyst highlighted that in October 2016, “28 of the Internet Retail 100 accepted Apple Pay in some form, including point of sale, mobile and desktop (excluding in app).”

Munster elaborated that there were four ways in which a retailer could adopt Apple Pay, including point of sale, desktop and mobile browsers and in app.

A check of the Internet Retailer top 100 online sites revealed that there were a maximum of 316 Apple Pay adoption points with the Internet Retail 100, with 62 offering point of sale and 54 offering an app.

The analyst also found that there had been 22 percent Apple Pay adoption in March 2017, equating to 71 of the 316 potential points of adoption.

Adoption Rates

In addition, Munster mentioned that within the Internet Retail 100, Apple Pay had 44 percent adoption at point of sale, with 62 of the 100 top online retailers offering point of sale, of which 27 accept Apple Pay.

Munster highlighted that “adoption of Apple Pay at point of sale is growing nicely, in-line with growth among other digital payment players.”

Again, within the Internet Retailer 100, Apple Pay had 40 percent adoption in-app, with 22 of the 100 online retailers offering Apple Pay in app, of the 54 retailers that offered apps.

Mobile Versus Desktop

With regard to mobile browser, there was 13 percent adoption, although the analyst stated that this low adoption rate was expected, given that “Apple Pay in mobile browsers started in the fall of 2016 and retailers tend to wait until after the holiday to switch over.”

In addition, there is 9-percent adoption in desktop browsers, despite the fact that Apple Pay on desktop required an iPhone, unless the retailer is using MacBook Pro with Touch Bar and Touch ID.

“Based on a data point Apple disclosed in April 2016, we believe that users are activating Apple Pay on about 30 percent of new iPhones. In total, we estimate that 13 percent of the 680 million iPhones in use today have activated Apple Pay,” Munster went on to say.

In fact, Apple has reported that transactions grew almost 500 percent year on year in the September 2016 quarter.

On scoring the user experience, the analyst found that “Apple Pay enjoys slightly better placement on mobile vs desktop.”

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