BIRMINGHAM, Ala.—A new study shows that while many consumers have activated their Apple Pay digital wallet, not many are actually using the new, much-hyped payment solution.
One-million mobile wallets were activated in the first 72 hours after the release of the iPhone 6—the only phone on which Apple Pay can be used--but a new survey from InfoScout and PYMNTS.com shows 85% of iPhone 6 owners have never even tried Apple Pay.
Only 6% of iPhone 6 owners use the service, and another 9% have tried it but were not utilizing the app, the study revealed.
The survey, entitled Apple Pay By the Numbers: Adoption and Behavior, included over 1,000 owners of iPhone 6 devices.
Apple POS Acceptance Growing
Earlier this month, Apple CEO Tim Cook announced Apple Pay is now accepted at more than 700,000 locations, including 50,000 vending machines and dozens of retail chains in America.
“Most new credit card terminals that comply with upcoming EMV technology laws also work with near field communications, which means they can accept Apple Pay and other mobile wallets just as easily as they can read credit cards,” explained John Oldshue, founder of SaveOnPhone.com here. “Thus, it appears there are ample opportunities for consumers to use Apple Pay in their daily lives. The question is: why aren't they?
Part of the reason for the slow adoption rate may be that Apple Pay is only available on NFC-enabled devices: iPhone 6, iPhone 6 Plus, iPad Mini 3, iPad Air 2 and the Apple Watch, posited Oldshue.
“Apple users with older generation iPhones and iPads cannot take advantage of the mobile wallet without upgrading to a new device. This is an obvious attempt to convince users to upgrade, but it is also an obstacle to the spread of Apple Pay.”
Consumer Apprehension
Apple must also overcome the apprehension many consumers have about mobile wallets. A January survey from ChangeWave Research showed 84% of Americans are concerned about storing their financial information on their mobile devices, noted Oldshue.
“Apple Pay may be faring better than other mobile wallets on the market, but it still has a long way to go to be considered a success,” he added.
“Apple still appears to be struggling to get beyond a small percent of early adopters,” noted Karen Webster, CEO of PYMNTS.com, in a released statement.
Bill Hardekopf, CEO at LowCards.com here, said he is “stunned” by how 85% of the people who have the ability to use Apple Pay have not chosen to do so.
“I think the survey numbers are a red flag and a little bit concerning,” said Hardekopf.