RHINEBECK, N.Y., Oct. 27, 2015 (GLOBE NEWSWIRE) -- Phoenix Marketing International, a global marketing services firm, has today released new data from their ongoing consumer tracking report on Apple Pay. One year later, continuing points-of-sale friction is retarding transaction potential. For a segment of the report visit: http://bit.ly/1LSeiYR.
Within the first four months of its release, the Apple Pay adoption rate (those linking any payment card to Apple Pay) surged 1o 11% of all credit cardholders (15% among smartphone owners). Since that time adoption rate has climbed to 14% revealing a slowdown in the growth rate. Higher adoption rates are shown among Millennials and Gen X'ers and, currently, these two groups account for 92% of Apple Pay users.
The slowdown in Apple Pay adoption was revealed in an ongoing Apple Pay tracking study conducted by Phoenix Marketing International. In addition, the research uncovered several friction factors that are undermining Apple Pay usage growth.
- Usage demand is there: Two-thirds of Apple Pay users have specifically asked if the merchant accepts Apple Pay.
- Nearly half of Apple Pay users have expected Apple Pay to be accepted – only to find out that the specific store visited did not in fact accept Apple Pay.
- A majority of Apple Pay users continue to encounter problems at the point-of-sale, including terminals that take too long to use, terminals that don't work properly and cashiers unable to help.
- A lack of customer support is another reason why adoption has been slowing. Apple Pay users tend to be confused as to whom they should contact when an error, such as a double charge occurs. 40% of users needing support are calling Apple, but really do not know who to call. Ultimately, Apple and its partners have to be ready to handle issues regarding customer support.
The research also revealed the importance of customer support in maximizing the Apple Pay opportunity. While many users don't need help, Apple Pay wallet usage is not 'set it and forget' proposition' for the 40% of users who needed to contacted Apple or their card issuer.
"An influx of inbound inquiries from Millennial and Gen X cardholders creates an opportunity for card issuers to engage customers and differentiate the bank brand," said Greg Weed, Director of Card Research at Phoenix Marketing International. Issuers are faced with new challenges to influence wallet position and differentiate benefits and services beyond those that are automatically delivered through the Apple Pay wallet. Future growth still depends on marketer's ability to differentiate the merits of digital vs. plastic card transactions."
Most Apple Pay adopters go on to use Apple Pay, and Apple Pay users are by and large undeterred by friction. Most expect to add cards to the Apple Pay wallet would like to increase their use of Apple Pay in the near future.
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.
CONTACT: Kristin Johnson firstname.lastname@example.orgSource:Phoenix Marketing International