Apple Pay dominates mobile payments in the wake of COVID-19
Mobile Strategies | 24 August 2021
Apple Pay accounted for 92% of U.S. mobile wallet debit transactions in 2020. A study by Oliver Wyman noted that about 2 billion mobile wallet debit transactions were conducted in 2020 using either Apple Pay, Samsung Pay, or Google Pay.
This figure is up 51% year-over-year, with Apple Pay benefitting most and outperforming its two major competitors across every metric. The fact Apple owns a 55% share of handsets in the United States makes this 92% share of U.S. transactions an incredible performance. Compared to Apple Pay’s 92% transaction share, Samsung Pay and Google Pay accounted for 5% and 3% of mobile wallet debit transactions.
The study also showed the average ticket size increased 55% from US$15 in 2019 to US$23 in 2020. This is in line with an overall increase in debit ticket size, which grew from US$40.50 in 2019 to US$44.80 last year.
In the United States, retailers have widely adopted mobile methods of payment. Of the top 100 merchants, 74 accepted the payment option and 65% of all retail locations in the nation supported the service, so the growth doesn’t come as a surprise for brands.
With the Apple brand focusing communications on privacy, consumers seem to trust its data protection. Apple’s in-app purchases also make up a significant share of the market with 57% of mobile wallet transactions accomplished.
The opportunity for brands is potentially very valuable. There is an enormous amount of data and modelling. Apple has tightened control of identifiers on Apple devices, giving brands the potential for a full attribution model from Apple both on and offline. This offers the ability to serve an advertisement, and then identify where a consumer made a purchase — online via an app or in a store — coupled with information about what, exactly, they purchased and the transaction value.
Could this be what brands have been waiting for?
Banner image courtesy of prima91 - stock.adobe.com.