The current headlines are rumor mongering over iPhone X production cuts for the first half of 2018, but Apple continues to improve the stickiness of iPhone by tapping into the exploding world of mobile payments with Apple Pay. Initially off to a slow start, Apple Pay is now reportedly accepted in 50% of US retail locations… of course, accepted at doesn’t necessarily equate to “used at.” That said, with smartphones and tablets account for 25% of e-commerce transactions in the U.S. it looks like Apple is continuing to play the long game as smartphones and tablets become a greater portion of digital commerce. Now to see more loyalty programs built into Apple Pay and its iOS Wallet…
Addressing conference attendees in a speech entitled “The Modern Shopping Experience,” Bailey presented a few interesting tidbits relating to Apple Pay growth and adoption, as well as insight into Apple’s current and future ambitions for mobile payments services, reports CNET Japan.
Purchases made on smartphones and tablets account for 25 percent of e-commerce transactions in the U.S. The rate of growth for mobile transactions is four times that of desktop, and 10 times that of traditional brick and mortar retail. The same phenomenon is occurring outside the U.S. China, for example, sees 80 percent of its e-commerce transactions performed on mobile devices.
According to Bailey, Apple Pay availability was limited to about 3 percent of stores in the U.S. when it launched in 2014, but is now accepted in 50 percent of stores. Beyond reasonably wide acceptance, the platform plays an integral role in the mobile e-commerce boom. The company provides retailer support in four distinct areas: apps, transaction settlement, loyalty programs and integration between store and mobile.