Research group: Apple Pay will grow slowly for the next 3-5 years

Researcher Aite Group says that Apple Pay, which marks its one-year anniversary this month, has failed to catch on with consumers, accounting for only one percent of all retail transactions in the U.S., reports Bloomberg Business

The service has reportedly suffered from a lack of promotion and limited number of terminals available in stores. Plus Apple Pay is only available on newer iPhones.

“People don’t know why it is they’d use Apple Pay,” Jared Schrieber, CEO of InfoScout, a shopper-research firm, told Bloomberg Business. “They are satisfied with the current methods and they don’t know how Apple Pay works.”

More than 75 percent of iPhone 6 and 6 Plus users hadn’t tried the service as of April, according to a June survey by Kantar Worldpanel ComTech. In the same month, 13 percent of 1,500 people surveyed by InfoScout and said they tried Apple Pay.

However, there's is more optimistic news. A July survey of 500 iPhone users published in July by the Auriemma Consulting Group found that 42 percent of the respondents used iit for in-app and in-store purchases.

And Apple told Bloomberg Business that "We’re off to a great start and we are seeing continued, double-digit monthly growth in Apple Pay transactions since launch."

Aite Peterson says Apple Pay is "going to grow reasonably slowly for the next three to five years, and then we are going to see a ‘hockey stick,’ a sudden surge.

Apple announced Apple Pay in September 2014, describing it as “a new category of service designed to transform mobile payments with an easy, secure and private way to pay.” It works with the iPhone 6 and iPhone 6 Plus and later hardware through a NFC antenna design, a dedicated chip called the Secure Element, and Touch ID.

Last month Apple added 45 more U..S. banks and credit institutions to the list of companies that support Apple Pay. The mobile payment service now has over 500 participating issuers nationwide. Apple Pay expanded into the U.K. earlier this year.