A recent report by CNBC today addresses the diverse use of mobile payment platforms such as Apple Pay around the world. The report states that US adoption is increasing in many countries but still lagging behind in the US.
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One of the drivers of consumer acceptance of mobile payment in other countries is the fact that this is the main reason alternative is cash. Gerard du Toit, Partner and Head of Bain's Banking and Payment Services practice in North America, said economies in countries like China and India have long depended heavily on cash.
Hence the idea to use a mobile payment platform Apple Pay is more attractive to consumers than cash. However, the United States has a much better developed credit and debit card system:
"China and India were very money-based economies – which has a fairly high cost and friction factor," said Du Toit. "Mobile payment is a dramatic improvement over the need to manage a ton of cash. A major factor in the proliferation of mobile devices is the big improvement. There is already a sufficiently good solution in the USA. "
In China, data from Bain show that WeChat Pay is the largest payment method in terms of" percentage acceptance "among consumers in China (84 percent) followed by AliPay (81 percent). From then on, the cash share is 64 percent, followed by debit and credit cards 54 and 52 percent. Apple Pay is 17 percent.
In the US, credit cards are the most commonly used method of payment at 80 percent, followed by cash at 79 percent and debit cards at 59 percent. The number of physical checks is 53 percent, followed by PayPal with 44 percent. Apple Pay ranks second with only 9 percent, followed by Venmo, Cell, Square, Google Pay, Facebook Messenger and Snapcash Weak acceptance in the US:
Will Graylin, founder of LoopPay, which was sold to Samsung, said Merchants need to reach a certain threshold before even early adopters consider moving completely to mobile devices. He said there must be at least 90% acceptance to get even 1% of consumers to change a habit.
"The reality is that we are not there yet," said Graylin, who was also global co-GM of Samsung Pay. "There just is not enough ubiquitous acceptance."
On the other hand, Tim Cook has touted the growth of Apple Pay during Apple's earnings forecast last quarter. According to Cook, the transaction volume of Apple Pay and the growth of new users outperform PayPal, even though it has not specified growth in the US.
What do you think of this data? How often do you use Apple Pay in the US and other countries? Let us know in the comments.
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