Dozens more companies sign up for Apple Pay

New York Times:

On Tuesday, Apple announced that in recent weeks the company had signed up dozens more banks, retail stores and start-ups to adopt Apple Pay, the company’s new e-commerce product, which allows customers to buy things with little more than a wave of their iPhone.

The new companies that recently agreed to work with the service include SunTrust, Barclaycard and USAA. Ten more banks, including TD Bank North America and Commerce Bank, will back the new form of payment on Tuesday. With the new additions, Apple says it supports the cards that represent about 90 percent of the credit card purchase volume in the United States.

That 90 is not retail volume, it’s long term potential. In other words, if merchants and consumers cooperated, Apple Pay could be used for 90 percent of US credit card purchases. Clearly, the banks adore Apple Pay. But do the merchants agree?

Staples, the big-box office supplies retailer, now accepts Apple Pay at its 1,400 United States locations. Chain grocers like Winn-Dixie and Albertsons take it, too. And on Friday, Amway Center, the home to the Orlando Magic basketball team, will accept Apple Pay at many of its retail and food and beverage stands during games.

Other companies have given hints that the service has legs. Whole Foods, the high-end grocery chain that has accepted Apple Pay since the service was released in October, said it had processed more than 150,000 Apple Pay transactions in the early days after the product’s release. McDonald’s, another original participating company, said Apple Pay accounted for 50 percent of its tap-to-pay transactions in November.

Other big companies that accept Apple Pay, like Disney, Lyft, Uber and Airbnb, did not respond with data before this article was published.

Not a bad start. Important to remember that Apple is selling new Apple Pay friendly gear every single day, increasing the population of people who are capable of using Apple Pay. When the Apple Watch hits, that will raise that number still further. The key for Apple is to reach the tipping point when merchants carry Apple Pay to avoid losing sales.