Reuters: the majority of top US retailers don't even plan to accept Apple Pay this year

Reuters: the majority of top US retailers don't even plan to accept Apple Pay this year
When we did our first take on mobile payments back in 2011, the field seemed so ragtag that nothing was guaranteed to work and become the de facto standard. Even then, however, all eyes were on Apple, and the assorted rumors that it is mulling a digital wallet system for the venerable iPhone line.

Well, last September this moment finally arrived, as Tim Cook unveiled the Apple Pay service, ready to take on the world. Asked whether he thinks he just killed the credit card, Apple's CEO chuckled in his characteristic way, and said "I think we put a dagger in it," in a fashion that must have sent chills down the spine of anyone smaller than Visa or MasterCard.

Fast forward a pregnancy or so, and the things aren't looking that rosy for Apple Pay. Besides all the competing mobile payment systems, like Visa's payWave, or MasterCard's PayPass, not to mention the various carrier undertakings, such as Softcard in the US, which got acquired by Google, or smaller initiatives like that of Paypal, or Boku, a new formidable entrant went into the fray. No, we aren't talking about the recent Android Pay announcement, but Samsung Pay, as its system allows for easy payments as if you use a magnetic stripe card, without the need for merchants to install special POS equipment, like with Apple Pay.

How exactly did this dedicated terminal requirement affect the proliferation of Apple Pay? Well, according to a fresh Reuters survey, out of the top 100 U.S. retailers, less than a quarter are currently accepting Apple Pay. Actually, two thirds of the respondents said their retail chains don't even plan to implement Apple's mobile payment system this year. The reasons? Extra equipment required to process transactions, lack of real customer demand, and lack of unrestricted data access to the payment statistics. This doesn't bode well for the Apple Pay crusade in the US this year, so we are very curious to see how Samsung Pay will fare once it launches here in the fall, as it doesn't require any modifications on par of the brick-and-mortar retailer.


source: Reuters

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26 Comments

1. gaming64 unregistered

It's simple. Many retailers aren't ready for Apple Pay yet but they will be in time.

7. waddup121 unregistered

This is simple, and effective!

24. AnTuTu

Posts: 1621; Member since: Oct 14, 2012

Sammy gonna rock the world with Samsung pay. I think they got it right.

2. Dude2014

Posts: 448; Member since: Feb 12, 2014

It's simple. The way Apple approach to mobile payment is wrong. Samsung pay makes much more sense than Apple pay.

5. Wiencon

Posts: 2278; Member since: Aug 06, 2014

I have to agree on this one.

6. gaming64 unregistered

No their approach is fine. Why isn't it popular? Well the reason is the fact that most people still use iPhones that don't have NFC and only the 6/6 Plus has it. Retailers wouldn't expect more customers to use it so they won't implement it since they aren't ready for it. If only Apple added NFC to previous models, Apple Pay would be a success. But in the meantime it's gonna remaining quiet and it will stay quiet. Apple screwed Apple Pay.

21. tedkord

Posts: 17452; Member since: Jun 17, 2009

No, it wouldn't. Retailers are dragging their feet because of the costs involved, and those wouldn't change if the iPhone had NFC in earlier models (which they didn't because NFC was a useless gimmick until a year ago.) People act as if this tech replaces credit cards (it doesn't, you still need a card to use mobile pay, and you're still going to need to carry it.). It's also not easier or more convenient than simply pulling out a card, all of which will soon have RFID chips making them work pretty much the same as mobile pay solutions.

23. Awalker

Posts: 1986; Member since: Aug 15, 2013

There's just no consumer demand for it. I've only seen one person use their their phone to pay for anything and that was me several years ago.

25. tedkord

Posts: 17452; Member since: Jun 17, 2009

I agree. It's just not any more convenient. It's easier for me to pull out my card - especially in a restaurant setting. When the waitress drops of the check, am I going to hand her my phone? Maybe if this could 100% eliminate the need to have the card on you people will move to it. But it never will.

3. Ordinary

Posts: 2454; Member since: Apr 23, 2015

Spawning american patriot

13. gaming64 unregistered

Please, just let this comment section stay argument free. I don't wanna waste eye movement for some B.S. arguments with trolls.

4. Wiencon

Posts: 2278; Member since: Aug 06, 2014

All technology aside, but i think that many people do not believe that their payments in smartphone are safe, maybe teenagers will use Samsung or Apple Pay, but more "experienced" people will stick to cards and cash, having in mind many stories about hackers stealing informations.

8. gaming64 unregistered

I still rely on cash and credit cards. Mobile payments aren't ready for me yet. I side with you.

12. Wiencon

Posts: 2278; Member since: Aug 06, 2014

At least I know who should I sue if my account data gets stolen - if I used Apple pay, I would sue them and they would sue my bank and my bank would sue me because I gave some company my data :)

16. nctx77

Posts: 2540; Member since: Sep 03, 2013

I'm all ready for mobile payments. From what I see, it's the most secure way to pay. My coworker is at the bank now(No lie), because his card got hacked at a gas station. Someone was using his card 2 states away. The biggest issue for me with Apple Pay is not knowing where it works. With that said, it will take a couple of years for it to really take off. I remember when most places didn't even take Debit/credit cards. You had to pay with cash. That wasn't that long a go. These things take time.

9. tokuzumi

Posts: 1948; Member since: Aug 27, 2009

Apple's method isn't secure. Listening to Clark Howard, Apple Pay has about 60x the amount of reports of fradulant charges, because the data isn't secured properly. Apple is going to have to revamp their system. I don't really like any of these systems. I'd rather just take out my credit card, swipe it, and go about my merry way.

10. Kruze

Posts: 1285; Member since: Dec 30, 2014

It's simple. The trend of mobile payment is not gonna happen, at least for now.

11. seh1984

Posts: 14; Member since: May 28, 2015

I don't have an Apple phone, but none of the Walmarts I have been to have the capability of accepting mobile payments from Apple or Google. That's pretty much the nail in the coffin for me.

18. DRS1977

Posts: 679; Member since: May 27, 2015

Samsung Pay will work at Walmart and Kroger and almost everywhere, which is a big win!

14. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

i prefer Visa's payWave. Just a tap with my credit card and its done. Best of all, i still get points into my card reward program.

15. Tizo101

Posts: 595; Member since: Jun 05, 2015

This is the same as smart watches, the big question is why?... gotta find a reason to do it in the first instance for it to be successful. I'm looking forward to Samsung pay because it makes a lot more sense than anything else.

17. BobbyDigital

Posts: 2125; Member since: May 29, 2014

Mobile payments haven't taken off in the US like it has in other countries like Japan. There's a lot of stiff resistance to mobile payments.

19. DRS1977

Posts: 679; Member since: May 27, 2015

Whenever I use Google Wallet somewhere, the clerks always tell me it is the first time they have seen anyone use it. Happens every single time.

22. roscuthiii

Posts: 2383; Member since: Jul 18, 2010

It'll be a while before I trust any of the mobile payment solutions. Software is just too much of an exploitable vector regardless of the encryption level. Financial gains aside, some may track to crack it just for the challenge it presents, or even for "lulz" alone.

26. EbonyPericarp

Posts: 67; Member since: May 02, 2015

What none of the mobile payment systems have worked out yet is that to truly succeed they will need to work on all platforms. The first to do this will own the mobile payment market.

27. Claudius2k

Posts: 1; Member since: Jun 07, 2015

Would you rather trust all your personal/CC information to a couple of hundred vendors or just one secure firm? Why would you want to carry both a phone and and a credit card? If the card (even a chipped one) is stolen anyone can use it, only your thumb will allow using ApplePay even if you lose your phone. Creditcard info can be used over and over illegally, Applepay tokens useless after one use. Applepay is STILL a credit card transaction with all the CC protection. The so called negative investment return will be the cost of retaining your customers as the tides shift.

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