Despite this January’s optimistic forecasts coming from Apple’s CEO Tim Cook who had said that the current year would turn into “year of Apple Pay,” a recent survey shows that many retailers remain skeptical of the mobile payment system.
Since the beginning of the year, Apple has been undergoing behind-the-scene negotiations with America’s largest brick-and-mortar retailers to persuade them to adopt the new system.
Yesterday, the tech giant announced that negotiations were a major success with more than a half of retailers willing to embrace Apple Pay by the end of the year.
“We’ve spoken to all of the top 100 merchants in the U.S., and about half will accept Apple Pay this year, with many more the following year,”
a spokesperson told reporters.
Apple Pay is a high stake for the California-based company. It represents both an opportunity to glue its customers to their iPhones and Apple watches and a chance to grab a small fee from every in-store retail transaction.
On the other hand, Reuters has recently reported that it had conducted a survey among retailers, analysts and other people that depicted a gloomier picture than the one Apple’s top managers have in mind.
The new agency surveyed 98 brick-and-mortar retailers from the top 100 list of the nation’s largest retailers. Two of those ran their operations on-line. Eighty-five provided reporters with accurate information on their decisions while 11 only disclosed whether they would accept Apple’s mobile payment network. Two declined to respond.
Less than one-quarter said that they currently accept Apple Pay, while two-thirds said that they couldn’t or wouldn’t accept it by the end of the year. Only four retailers said that they would certainly adopt the system in 2016.
The retailers that had reported they would not accept Apple Pay explained that not enough customers were interested in it.
Additionally, high operating costs and insufficient data from Apple Pay transactions were also cited as main factors that discouraged retailers in saying a definite yes to the new system. A few others disclosed that there was a rival payment system they planned to join in later this year.
They were referring to Merchant Customer Exchange (MCX), a Walmart-backed mobile commerce network that involves lower operating costs for its members.
A January report revealed that mobile payment networks support about 4 percent of all in-store transactions at the U.S. retailers. But the report failed to detail who are the major players and their market share blaming scarcity of data for it.
On the other hand, all analysts agree that Apple Pay had a rapid growth since its November launch, while its main competitor Google wallet somehow “stalled out.” As of January Mr. Cook said that two out of three dollars within the mobile payment network were spent through Apple Pay.
Image Source: Mashable
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