Apple Pay is winning over more U.S. households a year after its launch, but growth has slowed, according to Phoenix Marketing (as noted by Reuters). Fourteen percent of U.S. households with credit cards had signed up for the payment option by the end of September, up from 11 percent in February, the marketing firm said at a payments conference in Las Vegas.
"A very rapid initial threshold was achieved by Apple Pay and it is still growing but the growth rate has slowed down," says Greg Weed, director of card performance research at Phoenix.
An Apple spokeswoman declined to comment, but pointed out to Reuters that a company statement in early October cited "double digit monthly growth in Apple Pay transactions" since its launch.
About 48 percent of Gen Xers, in their mid-30s to mid-50s, use Apple Pay, compared with 42 percent of millennials, aged 21 to 34, Phoenix said, basing its info on research among 15,000 consumers. Among Apple Pay users, 86 percent have linked their credit cards to make a purchase, 49 percent consumers use their debit cards and 22 percent use different types of prepaid cards, the report showed.
Phoenix Marketing also says that a survey of 4,200 banking customers shows that the outlet for banking needs is facing growth challenges as other channels are used more often, or are more strongly considered for sales and service. The research found:
- Physical behavior has decreased from 48% percent of all transactions occurring at the branch, ATM and call center in 2009 to 40 percent in 2014.
- Mobile banking behavior has increased from four percent in 2009 to 17 percent in 2014.
- Online is considered significantly more than mobile for various types of transactions including checking account balance (71 percent), paying bills (64 percent) and transfer funds within own bank (54 percent).