For each of the past few years, many tech experts have predicted that mobile adoption was going to take off in the near future. And while those past predictions obviously haven’t come to pass as quickly as many expected, the fact of the matter is that retailers and consumers alike are starting to gain serious momentum when it comes to adoption. As such, it’s important to examine why people in particular will start to use these payment platforms more often in the coming year.
Perhaps one of the biggest factors in this regard is that Apple Pay, by far the mobile payment platform with the largest market share for publicly available retail options in the U.S. right now, is gaining a lot of momentum when it comes to making deals with banks, according to a report from Apple Insider. Indeed, the company is up to about 930 bank partners – meaning that customers of those financial institutions can connect their bank-issued debit and credit cards to their Apple Pay accounts – from just 515 as recently as September. Furthermore, the rate at which Apple is making new deals effectively doubles each month.
What else will work?
In addition to this, it also seems as though the broad adoption among both banks and retailers will likely give consumers more options for incentivized use of Apple Pay this year, the report said. Through the end of June, about 50 apps accepted payments via Apple Pay, and that was up to 70 – and rising – by September.
And when it comes to real-world retailers, bigger ones are a little slow to adopt, the report said. A little fewer than 100 major retail chains have taken up Apple Pay, but between those locations and smaller businesses, it’s estimated that more than a million stores and other businesses nationwide now accept Apple Pay, and that is obviously a number that will continue to grow throughout 2016 and beyond.
In addition, it’s expected that a new feature for Apple Pay could be introduced, and should prove quite popular, the report said. Because more people will be adopting it, it’s likely that Apple will allow individuals to use it as a means of sending money to each other, in addition to making in-store and in-app purchases. The tech giant has reportedly already had conversations with a number of major banks about allowing such cash transfers.
“While 2015 was the year of Apple Pay adoption at banks, retailers and in-app, we believe 2016 will be the year of new features for Apple Pay,” industry analyst Gene Munster told the site. “We believe peer-to-peer will be an important feature to increase overall consumer usage and awareness of Apple Pay and see mobile in-browser payments as a significant addition to the Apple Pay addressable market.”
As a result of these expected changes, the more smaller retailers can do to establish themselves as relatively early adopters of mobile payment platforms, the better off they’re likely to be to establish a position in the evolving market in the minds of consumers.Back To Blog