Phoenix Marketing International Quantifies the Impact of In-App Credit Card Purchases for Apple Pay
New research shows the in-app feature plays a major role in Apple Pay credit card transaction volume.
Rhinebeck, NY – New research from Phoenix Marketing International’s ongoing tracking study on Apple Pay has revealed that in-app credit card purchases account for 38% of total Apple Pay credit card transactions. During the first year of Apple Pay marketing, the Phoenix survey recorded Apple Pay credit card transactions among 833 Apple Pay users. Most (91%) made an Apple Pay credit card transaction in a store while two-thirds (67%) made an in-app transaction. Looking at total Apple Pay credit card transactions, 62% were made in-store and 38% were made in-app.
The survey also revealed some of the more popular Apple Pay retailer brands. In-store retailers with the highest foot traffic for Apple Pay credit card users were McDonald’s and Apple itself – with over 40% of Apple Pay credit card users making at least one Apple Pay credit card transaction over the last 5 months. Other leading retailers included Macy’s (36%) and Subway 32%. Apple also topped the list of retailers accepting at least one in-app Apple Pay credit card transaction (43%) followed by Target (36%) and Nike (29%).
“The push toward enabling in-app mobile wallet transactions is critical to building volume in a nascent market where the number of acceptance locations is relatively small (but growing) and the incidence of reported friction at the point-of-sale is high,” said Greg Weed, Director of Card Research at Phoenix Marketing International. “Regional differences are evident during this early stage – with only of handful of states accounting for half of all Apple Pay credit card transactions as reported by survey respondents.”
“At the same time, the underlying problem of usage frequency remains preeminent for both in-store and in-app purchases,” adds Leon Majors, SVP, Payments System Practice at Phoenix Marketing International. “For any given retailer, a minority of their Apple Pay credit card users reported making at least one purchase a month during the 5-month period. McDonald’s has the highest usage frequency percentage — with 38% of its Apple Pay credit card-using customers making an Apple Pay credit card purchase at least once a month at McDonald’s. Only four other retailers have relatively high percentages on this measure – Walgreen’s, Subway, Whole Foods and Target (for in-app purchases).”
For more information on this survey, please click here.
About Phoenix Marketing International
Phoenix Marketing International is a premier global marketing services firm providing its clients with tailored, unique insight into their customers and markets via a wealth of existing proprietary data. Coupled with custom research products and the latest qualitative and quantitative techniques, Phoenix has extensive research experience across the Automotive, Financial Services, Healthcare, Converged Technology and Media, Restaurant, and Travel/Leisure sectors. From the strategic definition of consumer needs to effective marketing program implementation, PMI provides profit-driven market solutions and is committed to maximizing a client’s Return on Marketing Investment (ROMI) by leveraging the ability to attract and retain new business through cost efficient data acquisition and statistical modeling techniques. Founded in 1999 by Chairman and CEO, Allen R. DeCotiis and Chief Research Officer Martha Rea, Phoenix Marketing International has established its global presence with offices in major locations such as New York, New Jersey, Boston, Philadelphia, Raleigh/Durham, Detroit, and London.
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