If you shop online regularly, you've probably noticed that more and more stores are offering Apple Pay as a payment method. What used to be PayPal or a traditional credit card is increasingly being replaced by mobile payment options. Apple Pay is one of the fastest-growing services. Users value speed, security, and simplicity above all else. But what's really behind Apple Pay's success, and what are its limitations?
Apple Pay is not only a convenient solution for consumers, but also reflects larger trends in e-commerce: Users want simple processes, companies are focusing on better conversion rates, and governments are promoting digital infrastructure. The fact that Apple Pay is now offered on 5.25 percent of all websites worldwide is a clear sign of how payment behavior is changing. A new study by Merchant Machine (May 2025) provides interesting data that shows how widespread Apple Pay is in certain regions and why.
What Apple Pay is and how it works
Apple Pay is a mobile payment service from Apple that lets you pay for purchases using your stored cards on your iPhone, iPad, Apple Watch, or Mac. Instead of sharing your card number directly with the merchant, Apple Pay generates a token—a unique replacement number—and a dynamic security code for each transaction. You confirm the payment using Face ID, Touch ID, or a passcode. This means you don't have to enter or share your real payment details every time. The entire process is encrypted and runs locally on your device. This significantly increases security and is a key reason why many users trust the service. This is more convenient on a smartphone than entering card numbers—especially when you're on the go.
Why Apple Pay is becoming increasingly popular
Apple Pay is now ranked fifth among the world's most popular online payment methods – just behind American Express and ahead of Google Pay, Stripe, and Shopify Pay. PayPal remains the clear market leader with a 26.24 percent share. Nevertheless, Apple Pay's growth shows that mobile solutions are catching up rapidly. The study also reveals which countries Apple Pay is most popular in. The leader is Saudi Arabia, where over 20 percent of websites support the service. Armenia, Ukraine, Kazakhstan, and the United Arab Emirates also have high adoption rates. In the USA, it is primarily states like Hawaii and Wyoming where more than 17 percent of websites offer Apple Pay.
- The reasons for this are obvious: Apple generally has a high market share in these regions, especially among younger target groups who are particularly tech-savvy. Saudi Arabia, for example, is investing heavily in digital infrastructure, and the widespread iPhone penetration among the population ensures that Apple Pay is quickly accepted. In the Gulf region, the Apple ecosystem also fits well into the trend toward digital management and financial solutions.
What Apple Pay means for merchants and developers
Apple Pay offers several advantages for retailers: Payment processes are faster, which leads to fewer abandoned purchases. This is especially crucial for mobile shopping. At the same time, developers who want to use a modern payment method in their apps also benefit. However, there are also limitations. Apple charges banks a fee of 0.15 percent per credit card transaction. Apple also sets strict rules for integrating Apple Pay into websites and apps. These hurdles mean that smaller banks and developers in particular are not always quick to adopt. Nevertheless, Apple Pay is increasingly becoming a requirement for many retailers if they want to offer a seamless user experience – especially in the premium or technology segment.
Regional differences and legal challenges
Apple Pay's success is not equally strong everywhere. In China, for example, WeChat Pay and Alipay dominate – Apple Pay plays a barely significant role there. In Europe, acceptance often depends on the country, with services such as Klarna and SEPA transfers being strongly represented there. One reason for Apple Pay's limited spread in Europe so far has been Apple's long-standing exclusive control over the NFC interface in iPhones. Only after an EU antitrust investigation in July 2024 did Apple open access to other payment services. A similar investigation is still ongoing in the US, examining whether Apple is unlawfully hindering competitors. Another limiting factor is hardware dependency: Apple Pay only works on Apple devices. Android users are therefore excluded – which restricts growth in certain markets, even if the user experience itself is convincing.
New functions and strategic direction
Apple is constantly developing its payment service. The Tap-to-Pay feature on the iPhone was recently expanded to additional countries. This allows smaller businesses to accept contactless payments directly via the iPhone – without any additional devices. This particularly strengthens brick-and-mortar retailers and the self-employed. At the same time, Apple discontinued its in-house "Apple Pay Later" program in spring 2024. Instead, the company is now focusing on partnerships with third-party providers that offer "buy now, pay later" services. This indicates a more flexible strategy in which Apple positions itself more as a platform than as a sole provider.
Apple Pay as part of a larger financial system
Apple Pay can no longer be viewed in isolation. Together with Apple Card, Apple Cash, and Apple Savings, Apple is developing its own mini-banking system. The Services division—which includes these products—generated revenue of $26.6 billion in the second quarter of 2025. This underscores how important the financial services business has become for Apple. For you as a user, this means fewer steps at the checkout, better integration with your devices, greater security, and an increasingly comprehensive range of financial features. For Apple, it's another step toward its platform strategy—with the Wallet app as the central entry point.
Apple Pay relies on technology, trust and reach
Apple Pay is growing not only because it's easy to use. The service benefits from Apple's strong hardware base, strong data protection commitments, and the global expansion of digital infrastructure. Especially in regions with strong iPhone penetration, Apple Pay is becoming the default option for online payments. The combination of user convenience, security, and strategic integration into the Apple ecosystem makes Apple Pay a serious player in global payments. Even though there are regional differences, legal challenges, and technical limitations, the direction is clear. Apple Pay is here to stay—and will likely continue to grow. Looking for new accessories? Then take a look at our Amazon Storefront —there you'll find numerous products from leading providers, including those for HomeKit and other devices! (Image: Shutterstock / DenPhotos)
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