Report: 25 percent of cards downloaded via Apple Pay are store and loyalty cards

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By: RickFerguson |

Posted on February 17, 2016

Because we can't get enough of survey results involving the intersection of mobile payments and loyalty, here's another mobile payments snapshot courtesy of First Annapolis. Focusing on iPhone 6 users, the report reveals that while awareness of Apple Pay is high among consumers, regular users of the service are harder to come by. Of those consumers who have downloaded and linked cards to the platform, a full 25 percent of them have downloaded store cards and loyalty cards.

In December 2015, First Annapolis Consulting Inc. interviewed 580 iPhone 6 users, as part of a total sample of approximately 1,300 household financial decision-makers and smartphone users, about general consumer payments usage and awareness. Here are some key findings from the survey:

  • Awareness of Apple Pay is high. Among all survey respondents, 73% have heard of Apple Pay, while awareness jumps up to 84% for the sub-group of iPhone 6 owners.
  • Usage of Apple Pay has plateaued. 20% of iPhone 6 owners reported adopting Apple Pay (i.e., having used the service at least once), down from 22% in the Spring survey. Among those that have adopted Apple Pay, only 15% say they use it regularly or frequently (i.e., more than once per month), compared to 19% in the Spring survey.
  • Loyalty cards play a key role in adoption. On average, Apple Pay users have loaded 2.3 cards into their Apple Wallet; 75% of cards loaded were general-purpose payment cards (41% credit, 30% debit, 4% prepaid), while 25% were proprietary retail store or loyalty cards which Apple began enabling only in the second half of 2015.
  • Apple Pay action happens at the POS. Despite relatively few NFC-enabled terminals in the market, the physical point of sale remains the primary channel for Apple Pay purchases. Among those that have used Apple Pay, 66% reported having made a purchase in-store, while 52% reported having made an in-app purchase.
  • If you've used Apple Pay, you probably like it.Among those that have used Apple Pay, 60% indicated that they are �very satisfied� with their experience and 94% are at least �somewhat satisfied�. Perhaps most importantly � no consumer indicated any level of dissatisfaction with Apple Pay.

According to the report, �the typical financial institution can expect 1 to 2% of cardholders to use Apple Pay two or more times, based on the survey results and Apple�s share of the U.S. handset market. This represents positive momentum for the evolution of the U.S. mobile payments market, but it also suggests a long adoption curve.

The Bullet Point: As many of our recent reports on mobile wallet adoption have suggested, loyalty and reward programmes will continue to drive adoption and continued usage of mobile payments. For programmes to continue to play a central role, however, loyalty marketers must focus their efforts on delivering real value, relevance, and a frictionless experience to their members.

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