How to get users hooked on mobile payment products –

Apple Pay, Facebook Messenger Pay, Android Pay, Google Wallet…to name a few.

Recently, I did my first Apple Pay at Whole Foods Market. Since Apple launched the product in 2014, it was the first time I have used it.

Surprisingly, it was very easy to use. I opened my “wallet” on iPhone and put it close to the POS, then swiped my finger print. That was it!

So… why are there very few people using it?

Apple is going to allow their users to transfer money via Siri

I also tried to transfer money to my friend via Siri using Square Cash app.

Actually, the problem is not specific to Apple Pay – almost all mobile payment apps in the US have low popularity. People are not used to using mobile payment methods for their merchandise, bills, rents, or dinner in restaurants. They mostly use credit cards and sometimes cash for everything.

But things are quite different in another major market… According to a 2016 report by Citi, China is the biggest Peer-to-Peer lender in the world, and 55% of all internet users in China have made a mobile payment of some sort. In comparison, that number is 19% in the US.

image credit: NextportChina

But even in China, WeChat Pay and AliPay take up about 72% of the market share in mobile payment service, but Apple Pay only has 5% market share (in relation to its market share of about 10% in the smartphones market, this seems a little bit too small). Since the apps face largely the same users (barring any differences in targeting strategies by these different apps), it seems that the root problem lies in the product instead of the users.

image credit: Chart of the Day

Author: Wen Wang

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