Apple Pay growth slows, claims research

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By Larry Banks

Apple’s mobile wallet system Apple Pay is still gaining more US customers a year after it first launched, but according to research released this week, growth has slowed.

Fourteen percent of households in the US that possess credit cards had signed up for Apple Pay by the end of September, rising from just 11% in February, said Phoenix Marketing International at a Las Vegas conference.

Apple Pay growth slows

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

Apple has not yet commented on the claim, but says that a company statement issued in October claimed the service had enjoyed “double digit monthly growth in Apple Pay transactions” since launch in 2014.

Almost half of so-called Generation X in their mid-30s to mid-50s use Apple Pay, compared with 42% of millennials, the age group comprised of 21 to 34 year olds, said Phoenix.

In terms of Apple Pay users, 85% have already linked their credit cards in order to make a purchase, with 49% of consumers using their debit cards and 22% using different prepaid cards, according to the report.

Phoenix says the company has been monitoring Apple Pay since launch in October 2014 with a study group of more than 15,000 consumers.

In June this year, around two thirds of the top 100 retailers in the US said they didn’t plan to accept Apple Pay this year…

SOURCE: Reuters.

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