Here at InfoScout, we love data. And we love mobile technology. So it shouldn’t surprise anyone that we’ve put on our analytics hats to learn how the hottest new player in mobile payments, Apple Pay, performed in the Super Bowl of shopping: Black Friday. To do this, we tracked the shopping behavior and opinions of those in our 170,000 household consumer panel who own an iPhone 6 / 6 Plus and shopped at a retail store that accepts Apple Pay this Black Friday weekend.
Despite its hype within the tech community, Apple Pay still has a lot of ground to cover. Out of all Apple Pay-eligible transactions on Black Friday, the new NFC-powered mobile payment method was used less than 5% of the time. Let’s explore the details behind this number and what the landscape looks like in terms of Apple Pay usage.
According to these real-time shopper surveys data, just over 9% of the iPhone 6 and 6 Plus users who shopped on Black Friday have ever tried using Apple Pay at checkout. Among those who have used Apple Pay, there was a 50-50 chance that they would use it at checkout when shopping at a participating retailer on Black Friday. To understand the “why” behind this behavior we explored the extent to which the product or experience itself was the culprit. We asked Apple Pay users what they thought of it as compared to swiping a card, and found overwhelmingly positive reactions to the experience.
If Apple Pay users have had such positive experiences, why did only half of them use Apple Pay when given the chance on Black Friday? Well, we figured they’d know best… so we asked them.
The biggest piece of the puzzle is simple: they were unaware that the store accepted Apple Pay. The second-most common reason is that they simply forgot. This isn’t necessarily surprising; the checkout process has become habit for most, and integrating mobile payments into your purchase flow requires change to a very deeply ingrained pattern of behavior. These two data points highlight Apple’s need to find a way to capture mindshare at checkout, and to remind or inform the user that the purchase could be made with Apple Pay. Of the two icons currently in use at Apple Pay-accepting stores, only one actually has any Apple branding, and both are fairly subtle and unlikely to grab attention. If there were a more prominent display, Apple could feasibly increase Apple Pay usage by over 40% – simply by having its user base behave more consistently.
Taking a step back, however, we see that the biggest opportunity is for Apple Pay to drive adoption among the 90% of iPhone 6 and 6 Plus users who have yet to try it – despite shopping at stores that accept Apple Pay. InfoScout’s survey of these potential users yielded some interesting results…
A whopping 32% of eligible users haven’t tried Apple Pay because they aren’t familiar with how it works, and 11% simply haven’t heard of it. That means that nearly half of people who are eligible to use Apple Pay can still be influenced via informational outreach or educational advertising. We’ve already seen that most users who pay with Apple Pay find it to be easier and faster, but now Apple needs to better inform their potential user base of these benefits. Bonus points to Apple if they can use that same campaign to address any security concerns users may have.
Even with all this data in hand, it is very evident that Apple Pay is still a nascent competitor in the payments industry. Apple Pay has only been around for 5 weeks, and with over 70 million Apple Pay-capable iPhones expected to sell in Q4 of this year, adoption of Apple Pay may shift drastically as more people upgrade their devices and the positive word-of-mouth from existing users spreads.
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