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Apple Pay accounts for nearly 80pc of Panera Bread’s mobile transactionsBy
The momentum behind Apple Pay continues to build, with 750 banks and credit unions having already signed on and the service now being integrated into 200,000 vending machines, laundry machines and parking meters.
During a conference call with analysts this week to discuss Apple’s fiscal first quarter results, CEO Tim Cook reported that Apple Pay makes up more than $2 out of $3 spent on purchases made using contactless payments across the three major card networks. Mr. Cook claimed the results are stronger for some merchants, with Panera Bread seeing Apple Pay account for more than 80 percent of mobile payments transactions while Whole Foods has seen mobile payments increase by 400 percent since the launch of the service.
“Apple Pay is off to a very good start and the feedback that we are getting from both institutions and individuals is extremely positive,” Mr. Cook said during the conference call.
“You can use Apple Pay up and down main street, to pick up a prescription at Walgreens, at Duane Reade, buy office and school supplies at Office Depot and Staples and shop for groceries at national and regional stores from coast to coast, including Bi-Lo, Harveys, Save Mart, Wegman’s Food Markets Whole Foods and Winn-Dixie among others,” he said.
Apple introduced Apple Pay in the fall of 2014. The solution in based on near-field communications technology, enabling users pay for purchases in stores and online from their phones.
This week, Apple Pay got another boost thanks to a new partnership with USA Technologies, which supports wireless, cashless payments for vending machines and other self-serve retail locations.
USA Technologies will roll out acceptance for Apple Pay nationwide to approximately 200,000 owners of coffee brewers, vending machines, kiosks, laundry equipment, parking pay stations and other self-serve appliances.
USA Technologies began building NFC capabilities into its cashless payment products and services approximately 10 years ago.
The USA Technologies partnership is the latest example of Apple Pay’s quick expansion since its launch.
This week, MasterCard and the PGA Tour said they would make Apple Pay part of the spectator experience at the Waste Management Phoenix Open for select food and beverage concession purchases at the tournament (see story).
At the end of 2014, Priceline.com integrated Apple Pay into its mobile application to streamline the reservation process for Express Deals, making it the first major online travel agency to adopt the new payment method, according to the company (see story).
“Point of sale suppliers tell us they are seeing unprecedented demand from merchants and all of our partners and customers simply love this new service,” Mr. Cook said.
“With all of this momentum in early days, we are more convinced than ever that 2015 will be the year of Apple Pay,” he said.
Chantal Tode is senior editor on Mobile Commerce Daily, New York
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