Why Is Almost No One Using Apple Pay?
forbes.com
forbes.com
Some POS always require a signature, which I don't understand. Some POS allow "swiping" at any time, others fail unless done at just the right time. Some POS are just flakey (please try again, while the line behind you glares).
Apple needs to publish a POS-side Human Interface Guideline (to compliment the iOS side).
https://developer.apple.com/library/ios/documentation/UserEx...
They also need to create an exemplar POS for others to copy.
And since we seem stuck with the self-service checkout, Apple needs to fix that experience too. Currently, they're two different UIs bolted together, both terrible.
It's not hard to see why this is having a difficult time gaining traction. The payoff for the consumer isn't particularly large, even when it works well.
The notable exception might be vending machines. That has worked pretty well on the few occasions that I have tried it, and is much easier than a swipe.
I see, you never worked with POS terminal software or vendors. I would already be happy if they got the VISA DCC exchange rate correct, or don't lose transactions, or do brand recognition correctly, or …
Merchants have problems but apple pay doesn't solve them, in particular the 6% fraud rate is even worse than the black card. The current model supports high rates for the banks because they eat the fraud. A drastically cheaper system needs to greatly reduce fraud and that ain't easy.
Also note that the people who are most interested in new and exotic payment systems are the scammers.
However, this looks to have been the result of concerted corporate effort and training (every clerk knows how it works, etc.). Can't see it catching on in a small business.
I know visa/mc/etc are pushing nfc and POSs are required to be updated soon... so maybe next year.
I don't think anyone who has tried Apple Pay is wondering why no one is using it.
But when they upgrade, newer terminals usually also support nfc.
When I first started using it, I worried about being the guy holding up the line fumbling to get it to work. But after the first few, that went away. As long as the merchant supports it, it usually works pretty seamlessly. There are a few that have stupid quirks, and the cashier can screw it up by pushing the wrong button at the wrong time, but on balance it's surprisingly good for me (when I find a place that accepts it).
I don't think it was ever reasonable to expect this to sweep the nation and replace credit cards in the first year. It's going to take time.
When I tell people the extra protection of Apple Pay, it makes them far more interested in using it. Who wants to be part of the next Target, Home Depot, Neiman Marcus violation of security?
I tend to avoid if possible these places that demand cash payments for less than $10, so in fact these places lose business because I know I'm not the only one.
As a partner in a small business, who uses a service like square, adding mobile payments is something we'd like to do but we aren't buying hardware to support it, it makes no business sense.
Likewise, it was a minor novelty at first so I enjoyed using it. Just tap, pay, and a receipt scrolls up the screen.
But then a bunch of my normal shops had issues when their POS provider disabled Google/Apple options to push their own. Also, some places where it should work, the terminal was broken and only accepted swipes. Then there's the paper receipt that they still hand you on top of the one you already have in your email. Still have to sign the slip. Basically the benefits of electronic payment end up negated by the continuation of paper receipts and signatures and are again relegated back to novelty status.
I think I mostly stopped using Wallet after a few attempts failed due to faulty POS terminals or changing vendor policies and I had to put the phone away and dig out the card. At that point, I wasn't just using a slightly less convenient method. I was using it after failing to use the slightly more convenient method.
If POS vendors actually had any pressure to properly support Apple/Google payment systems I'd go back to using it in a heartbeat but since they don't directly suffer from poor performance (as if some chain store is really gonna hound the POS company because a segment of their customers was mildly annoyed) there is little pressure for them to improve.
Stores themselves might be pressured because they directly face the public but there's not enough motivation to invest the resources when your customers are Rite Aid, Best Buy, Safeway, and Home Depot. Those companies only care that the POS works most of the time and doesn't cost too much.
Doesn't seem to be a strong reason for mobile payment right now.
I understand the potential payoff for a tech company makes the development of such a redundant technology worth the risk; it's still a shty idea.
It is faster since you simply hold your iPhone6 (+) over the CC terminal and press your thumb down. This is certainly faster than fishing the CC out of your wallet, swiping it and signing the receipt.
What I think the reporter isn't covering adequately is why many small merchants are cash only. I suspect they are doing this to avoid taxes. These merchants know that once the txn is in a computer, there is easy visibility on their cash flow.
If you happen to have earbuds in (so many people, these days) and then moving the phone around is annoying because of the cord.
If the smart watches can do payments then it should be more convenient, provided the actual mechanics of holding or swiping the back of your wrist to the terminal works.
Apple Pay is (comparatively )unreliable. It could be the terminal, it could be the software, it could be the iPhone or Touch ID. I dont know, but you are 10x more likely getting into problem then waving with your plastic card. People dont like to risk and be embarrassed.
There is no real incentive to use it. If Apple could have an App and store how i had spent the money with Apple Pay, abit like personal Finance organizer then i would have use it just to keep track of my spending.
It is slow, when i saw the demo it took 3 seconds, ( actually in real life it is likely to be 4+ ) I thought it was really slow. Compare to places like Singapore, Hong Kong, or Japan where you get sub 1 seconds payment using NFC card. ( Although they are not credit card based )