Apple Pay was only launched a couple of months ago, although it would appear that the service is already becoming a popular form of digital payment.
According to a recent report by ITG, Apple Pay accounted for 1 percent of all digital payments in dollars for the month of November, this compares to 4 percent for Google Pay, which has been available since 2011.
Apple Pay could pose a major threat to market leader PayPal’s current dominance of the Mobile Payment space, according to Steve Weinstein, Senior Internet Analyst at ITG Investment Research. Citing PayPal’s significant infrastructure barriers (a challenging relationship with payment counterparties and the lack of biometric capability) in comparison to Apple Pay’s compelling mobile payment solution, Weinstein believes that it will be difficult for PayPal to match the ease of use and consumer appeal of the Apple solution.
According to the report, around 60 percent of new Apple Pay users are using the service multiple times each month, this compares to 20 percent of new PayPal customers using the service multiple times.
Apple Pay is only available in the U.S. at the moment, although Apple are expected to expand the service in Europe next year.