Apple Pay international adoption has progressed more slowly than its growth in the United States, despite the service expanding into several major global markets. Apple has continued adding banking partners in countries such as Singapore, Australia, and Canada, but transaction volume outside the U.S. remains relatively limited. Early usage figures suggest that simply making Apple Pay available does not guarantee consumers will change their established payment habits.
Several factors may be contributing to the slower adoption. Technical problems during early deployments can undermine consumer confidence, while many international markets already have well-established contactless card infrastructure. In countries where consumers are accustomed to tapping a physical debit or credit card at checkout, paying with a smartphone may not provide a compelling enough convenience advantage to encourage them to switch to Apple Pay.
It is still in its early stages, but adoption of Apple Pay for payments is even slower outside the U.S. As reported by Reuters:
The service is available in six countries and among a limited range of banks, though in recent weeks Apple has added four banks to its sole Singapore partner American Express, Australia and New Zealand Banking Group in Australia, and Canada’s five big banks.
Apple Pay usage totaled $10.9 billion last year, the vast majority of which in the US. This is less than the annual volume of transactions in Kenya, a mobile payments pioneer, according to research firm Timetric.
One potential issue may be some of the technical difficulties that the launch has experienced, which does not give consumers confidence with the app:
In Australia, where Apple Pay launched a month ago, payment machines supported by one mid-sized bank reported frequent failures.
“Bendigo Bank is experiencing some unforeseen technical issues in accepting Apple Pay payments at selected merchant terminals,” a spokesperson for the bank told Reuters, adding that a lack of wider industry engagement in launching the service limited the lead time in testing the new technology.
Another potential explanation is that many of these countries are areas where contactless is widely available at the point of sale. Co consumers don’t see much of a convenience advantage tapping their phone versus tapping their card with contactless chip capabilities.
Apple Pay international adoption demonstrates that mobile wallets must offer consumers more than technological novelty. In markets where contactless cards are already fast, convenient, and widely accepted, Apple Pay must provide additional value to persuade consumers to change the way they pay.
Broader bank participation and improved technical reliability could help increase usage, but consumer behavior may remain the biggest hurdle. Apple’s long-term international success will depend on whether it can make the mobile wallet experience meaningfully better than the contactless payment methods consumers already use.
Overview by Sarah Grotta, Director, Debit Advisory Service at Mercator Advisory Group
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