ITG report finds strong Apple Pay momentum

ITG Research:

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.

Key research findings:

• 60% of new Apple Pay customers used Apple Pay on multiple days through November, suggesting strong customer engagement. In comparison, New PayPal customers used the service on multiple days during the same time period just 20% of the time.
• Apple Pay customers used the service roughly 1.4 times per week and used Apple Pay at the same merchant for future transactions roughly 66% of the time.
• Upon adoption of Apple Pay, the average consumer uses the service for approximately 5.3% of all future card transactions and 2.3% of all future card dollars spent.

Apply Pay just keeps on chugging along. [via 9to5mac]