Where Apple Pay is used

Some of the most important insights from TXN’s survey of Apple Pay use include:

  • The number of people using Apple Pay is tiny. At the retailer with the highest rate of usage; New York City drugstore chain Duane Reade, only 1.8% of customers paid with Apple Pay.

  • Apple Pay is popular in vending machines the third biggest physical recipient of transactions was Canteen Vending. A little under 1% of the transactions at Canteen’s machines involved Apple Pay.

  • Apple Pay is a tough sell even online. The website with the highest rate of Apple-Pay use was Hotel Tonight; where around 3.4% of transactions involved Apple Pay.

  • The affluent are slightly more likely to use Apple Pay. Most of the brands accepting it such as Whole Foods (affectionately nicknamed Whole Paycheck); Trader Joe’s and the New York based Duane Reade cater to upper class clientele.

  • Apple Pay has failed to penetrate the online retail market. The e-tailer with the highest rate of Apple Pay usage was the online discounter Boxed.com – where just 2% of transactions involved the app.

  • Apple Pay has not penetrated the app economy. Less than .20% of the transactions on Airbnb involved the app. Only a little under 1.5% of Lyft users used Apple Pay.

  • Apple Pay is not a significant source of revenue for retailers. It attributed for just .70% of the purchases at Trader Joe’s and .60% of those at Sprouts Farmer’s Market (NASDAQ: SFM).

  • Apple Pay is even a tough sell at the Apple Store. Around 1.25% of purchases at Apple’s own retail outlet involved the app.

  • TXN’s numbers are a little suspect, it lists Starbucks (NASDAQ: SBUX) as an Apple Pay taker. Starbucks is not on Apple’s official list of merchants. Nor is Duane Reade differentiated from its parent Walgreens. One has to wonder if TXN is reporting Walgreen transactions as Duane Reade purchases. As far as I know Duane Reade operates in just one city; New York, while Walgreen operates nationwide.

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