August 11th, 2022 | 3 MIN READ

The Truth About Apple Pay for eCommerce

Written by Elastic Path Team

apple-pay-for-ecommerce

This post was originally posted in 2021 and has been updated for relevancy.

Is Apple Pay the Way for Digital Wallets?

Mobile wallets have infiltrated digital commerce, offering a way to streamline checkout across desktop, mobile, and apps. Eliminating the need to remember or carry shipping addresses and credit card numbers, digital wallets such as Apple Pay reduce errors and boost conversions. But is Apple Pay right for your checkout?

But is Apple Pay right for your checkout?

Apple Pay by the Numbers

By 2022, Apple Pay users are set to reach 45.4 million users. This number is based on mobile users 14 years old and up who use Apple Pay as a contactless method of payment. 

Research shows Apple’s availability is on the rise by 20%.  They suggest this number comes out of a need for merchants and banks to align payment with shopper behavior and preference, especially since the pandemic boom drove more users to digital wallets. 

As of spring 2022, here’s how Apple Pay fares in the world of digital wallet market share: 

  • Apple Pay gained 66 million new users in 2020. 
  • Six out of ten people in the UK used Apple Pay for point-of-sale transactions in 2021.
  • Apple Pay has a 43.9% mobile payment market share in the U.S. 
  • Despite having over 500 million registered users worldwide, Apple Pay failed to make any inroads in China.
  • Apple Pay accounted for a staggering 92% of the mobile debit wallet market in the U.S. in 2020.

Building a case for Apple Pay

Apple Pay may be worth a trial when:

  • Your mobile traffic is greater than 75%, with a high percentage of iOS users.
  • You serve a younger, tech-savvier customer base that both uses and prefers mobile wallets.
  • With an existing payment provider it is possible to show contextually relevant payment options to users who have existing Apple Pay accounts. Convenience and availability again lead to higher checkout conversion and loyalty rates. 
  • Account creation is optional, not required.

In Response to Customer Demand

Later in 2022, Apple plans to launch  Buy Now Pay Later (BNPL), a growing trend in payment options. Branded Apple Pay Later, the tech behemoth will underwrite loans and absorb losses from missed payments. 

Why Does this Matter? 

Research shows us that BNPL payments are expected to account for nearly a quarter of all global commerce transactions by 2026, up from 9% in 2021. 

The payment type skews younger, however the numbers show us that BNPL attracts all audiences, from Boomers, to Gen Z, and Millennials. This is clearly a way Apple can win with increased customer demand across demographics. 

Additional food for thought: studies show 74.6% of customers acknowledge that the payment process is essential to the shopping experience with over 50% saying they have canceled a purchase due to lack of an acceptable payment method. Giving customers multiple payment options such as Apple Pay, increases checkout conversions and customer loyalty. 

Looking to improve your mobile experience?

Check out our guide to mobile commerce and discover it's benefits, hurdles to overcome, and why it's should be an important focus of your business.

Read the Guide

 

Disadvantages to Apple Pay

  • It’s unknown if the zero-fee trend will continue as Apple Pay gains popularity
  • High upgrade costs for retailers on devices and training; due to these costs, brick-and-mortar retailers may be slow to adopt or avoid it which affects availability

While Apple Pay is increasingly offered by ecommerce platforms and payment gateways, it’s not a silver bullet for digital merchants. If you’re struggling with mobile conversion, ensure you’re regularly improving mobile checkout usability and site performance.

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