Apple Pay Dominates Mobile Payment Platforms, Coming to Vending Machines [Updated]

Apple's mobile payment system, Apple Pay, is only about three months old, but already accounts for the lion's share of wireless credit card payments. The iPhone and iPad maker said Apple Pay currently accounts for more than two thirds of contactless payments.

Apple Pay dominates mobile payment platformsApple Pay dominates mobile payment platforms

Apple CEO Tim Cook said during the company's first fiscal quarter earnings report on Tuesday afternoon,

Three months after launch, Apple Pay is more than two out of three contactless payment dollars across all networks. For merchants who already accept Apple Pay, rates are even higher.

Mr. Cook said that 80 percent of mobile payments at Panera Bread come from Apple Pay. Grocery retailer Whole Foods has seen a 400 percent increase in contactless payments.

Those numbers are expected to climb even more once Apple Watch ships this April. Apple Watch is Apple's smartwatch device, and will include Apple Pay support. Once the watch hits store shelves, Apple Pay will expand beyond the iPhone 6 and iPhone 6 Plus to include the iPhone 5 and iPhone 5s.

Apple Pay will soon be available in over 200,000 self service places, including retailers, vending machines, parking meters, and more. That will come thanks to a partnership with USA Technologies, a company that specializes in small payment self-service terminals.

USA Technologies is no stranger to wireless payment support. The company started adding NFC support to its cashless payment systems ten years ago, and has seen growing interest in the feature. NFC, or Near Field Communication, is the technology Apple, Google, and others use to handle wireless credit card transactions from smartphones.

"We anticipate that the millions of consumers who frequent these locations will appreciate the convenience and security of using Apple Pay for their everyday purchases, and we believe that Apple Pay will help to drive additional sales for our customers," said USA Technologies CEO Stephen P. Herbert.

Mr. Cook said point-of-sale suppliers are seeing an unprecedented demand from merchants for Apple Pay-compatible transaction terminals, too.

Apple reported US$74.6 billion in revenue and earnings at $18 billion for its first fiscal quarter for 2015. iPhone sales hit 74.5 million units, coming will about analyst 69 million unit estimates.

Mr. Cook added, "We are more convinced than ever that 2015 will be the Year of Apple Pay."

[Updated with additional information about USA Technologies]