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Analysis
 Background.

Apple Pay accounts for two thirds of all contactless payments made using
Visa, MasterCard, and AMEX.
It is the most quickly and widely adopted mobile payment system ever. 
It is unclear how much Apple Pay is used because of discrepancies in
data sampling and survey questions.
 Recommendation #1
Spend $500mm USD to conduct market research to inform our knowledge of:
• How many people use/know Apple Pay
• How they use Apple Pay
• Features that would make customers use Apple Pay.

Basis for Recommendation #1

• Two sequential surveys stated that ~9-15% of users tried Apple Pay, but only half those that have tried
it, use Apple Pay regularly. 
• A later survey found that 66% of iPhone users reported they had activated Apple Pay, with 58% of them
using it at least once. 

We do not have accurate data about who is using Apple Pay, and to what extent they use it. An intensive
market research campaign will make data available that can inform future actions.
 Recommendation #2
• Based on the analysis of our previously conducted market
research, iterate design of the Apple Pay platform to conform to
consumer needs.
• Facilitate ease of use features for customers and merchants. 
• Troubleshoot/Eliminate common user experience pain points.

Basis for Recommendation #2

• Surveys indicate that 68% of users had a problem during their purchase.

Making Apple Pay easy to use will increase the likelihood of

consumers using our payment platform.
 Recommendation #3
• Use $500mm to conduct targeted adverting and product
placement.
• Demonstrate how/why to use Apple Pay to the key user demographics that
we came to know from our market research initiative.

Basis for Recommendation #3

• Educating consumers will make Apple Pay easy to use.

Increasing customer awareness of Apple Pay and educating

consumers on how to use it will increase the likelihood of consumers
adopting and continuing to use our payment platform.
 Assumptions
•$5 Trillion in transactions per year.
•Apple Receives 15 basis points (1/10k)
per transaction.
•If consumers used Apple Pay for 100% of
their transactions, Apple could make $7.5
Billion in transactions fees every year.
•If consumers used Apple Pay for 25%-75%
consumer transactions it could net Apple
$1.8-$5.6 Billion annually.
Risks
• $500 mm USD for research, data analysis, and advertising for the first
year.
• Less than 3% of our market research budget for 2020
• $500 mm USD on targeted advertising based on data pulled.
• 27% of our advertising budget.
Uncertainties
• Will consumers ever fully buy into the
concept of a digital wallet?
• Will our Competitors find ways to spur wider
adoption of their platforms?
• Will our Competitors design features that we
do not offer?
• How can we ensure our data
collection/analysis methods do not result in
unclear or confusing information, as was
previously the case?
 Final Notes and Ideas
• Apple Pay is not adopted as widely as cash and cards because:
• It is a new technology.
• Credit cards have been around for decades.
• Cash has been around for millennia.
• It is not easy to use, as evidenced by the high amount of trouble users have during
payment transactions. 
• The Apple Wallet does not have the functionality of a real wallet.

• Users can pay for items but cannot store or use key items found in a real wallet.
  E.G. Government/University/Employer issued identification, Passports, or Business Cards
• We should enhance the functionality of Apple Wallet by developing features that allow users to
carry these items digitally.
• Perhaps we could develop a way for users to buy/sell crypto currencies, stocks, bonds, or
commodities could mitigate the threat of rivals in the digital wallet space and keep us at the
forefront of innovation.
Before we can do any of this, we must collect more data to understand
what business we are in and ensure that our marketing and product
development support this business.
QUESTIONS?