Despite the number of contactless mobile payment options rolled out in the past few years – Merchant Customer Exchange (MCX), Google Wallet – none have took off. When Apple Pay was released in October, however, it surpassed all others in users in the first 72 hours. At Whole Foods it is accounting for close to 1% of all payments.
As shown in this graph from L2’s Digital IQ Index: Specialty Retail, brands have been quick to embrace the platform as well. Sephora has pledged to offer Apple pay later this year, and Aereo and American Eagle have been listed as official partners. The Sportswear category has particularly embraced the platform, with 29% of brands partnering with Apple Pay. Baby & Kids is the next most receptive category, with 11% of brands partnering with Apple Pay
While the percentage of users seems small as of now, mobile in-store payments are expected to skyrocket starting in 2016. Even in the absence of Apple Pay, iOS users exhibited habits that benefited retailers. They purchased five times the number of mobile purchases of last year’s Android mobile users at twice the average order value.