Apple Pay is the most desired tap-to-pay method: Piper Jaffray
According to investment company Piper Jaffray, Apple Pay (AAPL) is the leading cashless payment method in terms of merchants’ preference, easily surpassing rivals such as Android Pay (GOOG), PayPal (PYPL), and Korea’s (EWY) Samsung Pay (SSNLF).
Piper Jaffray polled 507 value-added resellers and independent software vendors. It found that approximately 44% of their customers are using or have requested information about NFC (near-field communication) payment terminals.
Also, 67% of the merchants interested in contactless payment solutions “expressed a desire” to support Apple Pay. As shown in the above chart, Apple Pay is the most popular option among merchants, followed by Android Pay. PayPal and Samsung Pay were in the third and fourth positions, with 8% and 7% of merchants expressing a desire to support these systems, respectively.
Survey encouraging for digital wallets
“We believe it is telling that PayPal, who has been the leader in digital payments, so significantly under-indexed Apple Pay and Android Pay,” analyst Gene Munster wrote in a note to investors.
Munster also stated that although the survey reflects poorly on PayPal, it’s an encouraging sign for the digital wallet segment in general. The analyst also expects Apple Pay to constitute less than 1% of Apple’s revenues and earnings in 2017.
“Apple Pay’s significance is an engagement tool, which longer term is a must-have for any successful phone as cash slowly goes away,” Munster said.