Apple Pay growth has stagnated, says new research

Apple Pay is continuing to win over more people in the US a year after its launch, but not all is rosy as its growth has slowed down, claims new research from Phoenix Marketing International.

By the end of September, 14 per cent of US householders with credit cards signed up for Apple’s payment service. That marks a three per cent increase from February.

“A very rapid initial threshold was achieved by Apple Pay and it is still growing but the growth rate has slowed down,” said Greg Weed, director of card performance research at Phoenix.

Apple has yet to comment on these findings, but the company did point out that in October, one of its statements showed there has been “double digit monthly growth in Apple Pay transactions” since its launch.

According to the research, almost half of Generation X-ers, those who are in their mid-30s to mid-50s use Apple Pay. Surprisingly, less millennials find Apple Pay appealing, with 42 per cent saying they use the service.

In terms of type of card linked to the service, 86 per cent of Apple Pay users have used their credit card to make payments with Apple Pay, 49 per cent used their debit card, whilst 22 per cent use a different type of prepaid card.

Phoenix said it’s been monitoring Apple Pay since launch in October 2014 with a study group of more than 15,000 consumers.

In June, two-thirds of the largest US retailers told Reuters that they had no intention of accepting Apple Pay this year.

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