Mikey Campbell
As part of JP Morgan Chase's 2015 Investor Day on Tuesday, the bank went over statistics relating to its credit card business, announcing it has provisioned over one million wallets on Apple's fledgling Apple Pay mobile payments service.
During today's investor conference call, Chase said that more than one million customers have provisioned their credit and debit cards for use with Apple's digital wallet, opening up opportunities for online and NFC-based touchless payment with the iPhone 6 and iPhone 6 Plus.
"We were an early participant of Apple Pay," said Eileen Serra, CEO of Chase Card Services. "We do continue to see good growth in the number of consumers that are provisioning Chase cards in their Apple Pay wallet."
Serra said Chase customers who use Apple Pay tend to be younger with higher incomes, which is to be expected considering the platform relies on iPhone 6 and iPhone 6 Plus for touchless payments. Since Apple Pay's launch, 69 percent of Chase card transactions were credit based, while debit made up the remaining 31 percent of purchases.
"We've been excited about the feedback we've gotten in terms of the great customer experience," Serra said. "As more merchants adopt, I would expect to see more traction here, as well."
While Apple Pay launched over four months ago, Apple has yet to release detailed adoption numbers, leaving credit card companies, banks and retailers to report their own statistics. During Apple's quarterly conference call last month, CEO Tim Cook forecast accelerated growth and even called 2015 "the year of Apple Pay."
Today's announcement comes after Bank of America revealed similar adoption numbers in January, with almost 800,000 customers provisioning 1.1 million cards on Apple's service.
Earlier today, credit card network Visa announced plans to introduce its network-level tokenization service in Europe this April, laying the technological foundation for an international Apple Pay rollout.
Mike Wuerthele
Chip Loder
William Gallagher
Wesley Hilliard
Malcolm Owen
Christine McKee
18 Comments
This is an awesome beginning. ApplePay is gonna be huge. It will be all over Europe by end of April.
[quote name="AppleSauce007" url="/t/184930/chase-announces-over-1m-wallets-provisioned-on-apple-pay#post_2680793"]It will be all over Europe by end of April.[/quote] Any reason why you think it will spread through Europe that quickly?
Only 1mm user? Apple is doooooomed. Just kidding. I am still in awe of the perfect combination of tech and liberal art that creates the Apple Pay. You could just study the how and why of Apple Pay to understand why Apple is so successful.
That last stat is the most important. People are spending more with ?Pay than their regular card.
Every bank in the world, and every credit card provider is going to jump all over this.
The one issue that I've noticed is that sheer convenience, inertia, and not wanting to hold up the line behind me works in favor of the default credit card (in my case, Amex) being used to make all my payments on ApplePay: hold phone over NFC symbol with finger on TouchID, make sure the check sign shows up against the image of the default card, sign (sometimes), and leave.
I wonder what the implications of this would be for credit card companies jockeying for you to be their default. I'll bet there are significant market share implications for credit card companies of ApplePay becoming huge.