Adobe Digital Index came out with a new study, which was published on Tuesday; according to this study the online stores supporting digital wallets are more likely to secure a purchase as compared to the stores that do not accept digital wallet payments. As per the analysis the chances of a customer buying items will increase about 10% more if the online store had the option of digital wallet available at the time of checkout.
Adobe noted that payments through digital wallets were more frequent on smartphones. According to Adobe Digital Index about 23% of online purchases avail alternative payment procedures. 16% of digital wallets transactions are carried out on desktops while 19% are done on tablets.
Adobe Digital Index after looking at the statistics have come to a conclusion that online retailers that support any form of digital wallet, like Apple Pay, Google Wallet or even Amazon payments will have the upper hand this holiday season. ADI further believes that Apple users will definitely use Apple Pay as their alternative payment method.
Tamara Gaffney, a prominent analyst at ADI said that although most retailers are looking forward to starting Apple Pay at their stores, but it is being delayed due to the requirement of installing the proper technology that supports the Apple Pay system. However, this requirement is not needed for online transactions and therefore Gaffney believes that Apple Pay’s first success story may come from online transactions.
Apple Pay was successfully launched last month giving its users the opportunity to pay through their credit cards using their fingerprints; but the transaction must be made using iOS. Apps like Apple Store, Open Table, Disney Store and Target are the apps that support online payments via Apple Pay.
Amongst Apple Inc. (NASDAQ:AAPL) products that currently support Apple Pay are iPhone 6 and 6 plus, iPad Air 2 and mini iPad 3. According to data collected by ADI, iOS users are more involved and actively engaged as compared to Android users. After looking at the 700 million app sessions it can be seen that Apple’s iOS shows 65% of app launches while Android shows a mere 34%.
The strength of Apple’s iOS users and the growing online market suggests that this holiday season a lot of purchases will be made online via Apple Pay. Although other means of mobile wallet will also be used but Apple Pay is likely to dominate them.
Online market has grown at a rapid pace over the years. It’s convenient and easy. People these days are more inclined towards shopping online because it is less hassle, consumers do not have to go out of the house and stand in checkout lines. Shopping online is just a click away and the item gets delivered to you door step. Payments via digital wallets make this experience even more convenient.
Therefore it can be assumed that this holiday season will bring good news to Tim Cook’s Apple Pay and may just give it the kick start the payment method needs right now.
