While retailers and banks continue to jump on the Apple Pay bandwagon, consumers have not yet caught on – particularly for holiday shopping.
Only 4.6 percent of 170,000 households with an iPhone 6 used Apple Pay to purchase items at retailers who accept it, according to a recent InfoScout survey. Thirty-one percent of those consumers didn't pay with Apple Pay because they were unaware that the retailer accepted it, while around 25 percent of respondents forgot to use it.
"The checkout process has become habit for most, and integrating mobile payments into your purchase flow requires change to a very deeply ingrained pattern of behavior," wrote InfoScout's Ittai Barzilay in a blog post.
In more worrisome news for Apple, 11 percent of those surveyed are unaware that Apple Pay exists and 32 percent of respondents don't know how it works.
However, Apple Pay continues to gain ground among retailers, bank issuers and credit card companies. The new mobile payment service can now support the credit cards that account for around 90 percent of all card transactions in the US, according to Apple.
Some of the banks that recently signed on to accept Apple Pay include SunTrust, Barclaycard, USAA, TD Bank North America, Commerce Bank and BB&T.
In late November, six new retail chains said they would accept Apple Pay, adding to the list of retail giants such as Starbucks and McDonald's. New retailers added include BiLo Holding, Harvey's and Winn-Dixie, Albertson's and Jewel-Osco, Shaws and Star Markets, United Food Stores and Associated Food Stores.
Retailers are counting on Apple Pay to not only boost mobile purchases, but also to help consumers feel more secure about their transactions, which may play a bigger factor in next year's holiday sales.
"Apple Pay is probably worlds safer than what we currently carry in our wallet today," Stuart Tryon, special agent in charge of the U.S. Secret Service Criminal Investigative Division (CID), told CBS News. "You pull the phone out, your finger is on the touch ID, and the merchant, the merchant issuer, everyone knows that you are legitimate when you're doing that. So that means protecting the data."
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