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Apple Pay now accounts for 1.7 percent of the mobile payments market after its launch on October 20, still lagging behind Google Wallet’s 4 percent share of the market, according to ITG research picked up by MarketWatch.

Even though it’s the new kid on the block, ITG reports Apple Pay is gaining ground quickly, as Apple Pay users are more engaged. According to research, 60 percent of new Apple Pay customers have transacted through the app on multiple occasions and multiple days.

The top three retail locations iOS users took advantage of Apple Pay during its first six weeks on the market were Whole Foods, Walgreens, and McDonalds. The latter makes for a hilarious changeup from the health focused companies.

Whole Foods found the most love from Apple Pay, accounting for 20 percent of all Apple Pay transactions and 28 percent of all Apple Pay dollars spent in November, according to ITG.

Whole Foods has been embracing Apple’s new mobile payments software wholeheartedly, as Jason Buechel, Whole Foods’ chief information officer, said the health-focused company processed 150,000 Apple Pay transactions in the first 17 days of Apple Pay’s launch.

PayPal remains king in the mobile payments space, accounting for 78 percent of the market share in November. ITG analyst Steve Weinstein says Apple Pay “could pose a major threat” to eBay’s PayPal.

Apple announced earlier this week Apple Pay now supports the cards that represent roughly 90% of the credit card purchase volume in the US, after adding a slew of new partners.

[MarketWatch]

  • Stores that don’t yet offer ApplePay will see a loss of customers until they upgrade their systems. Im shopping all the time now at Whole Foods.

    • White Michael Jackson

      lmaoooo why do people keep saying this? it sounds stupid.

      • Greg Warren

        They keep saying it, because it’s true. CVS and Walgreens are around the same distance from my house. Beforehand I rarely cared which I went to. Now that CVS has blocked Apple Pay and Walgreens is embracing it, I avoid CVS and go to Walgreens when I need to. I have no desire to spend my money at a company who is promoting CurrentC. I also like the convenience of Apple Pay as well as security. Why would I settle for less?

  • Матт Реякіпѕ

    The fact Apple Pay already accounts for 1.7% and limited to 2 devices says a lot. Google Wallet is available to anyone. Just wait until all current iPhones are enabled with NFC chips and watch how fast that percent increases.

    • Greg Warren

      Not to mention once US retailers are more or less “forced” by new regulations to update their terminals to be chip and pin systems next fall. Many retailers will get the NFC version of the terminals, which will then enable more facilities to support Apple Pay/Google Wallet.

      For those unfamiliar, retailers aren’t technically “forced” to upgrade, but if there’s a fraudulent charge after next October and the retailer was still using the older style terminals, they are liable for any chargebacks instead of the credit card company.