Where Is Apple Pay Actually Accepted?

The big question facing persons with Apple Pay is: “Where can I actually use it?” As I’ve noted earlier, many of the largest retailers around are refusing to accept Apple Inc.’s (NASDAQ: AAPL) for a variety of reasons.

The good news for Apple Pay users is that the number of companies accepting it or planning to is growing. The bad news is that many of the biggest names in retail, including Kroger, Walmart, Costco, Target and CVS Health, are still saying no to Apple Pay. Here is an update of retailers that accept Apple Pay as reported on the Apple Pay site:

• American Eagle Outfitters
• Aeropostale
• Babies R Us
• Bi Lo – a supermarket chain headquartered in Jacksonville, Florida
• BJ’s Wholesale Clubs
• Bloomingdale’s
• Champs Sports Bar
• Chevron convenience stores
• The Disney Store
• Duane Reade
• Foot Locker
• Foot Action
• Harvey’s Super Market
• House of Hoops
• The Jewel Osco drugstores
• Lady Foot Locker
• Kids Footlocker

 

• Macy’s
• McDonalds
• Meijer
• Nike
• Office Depot
• Panera Bread
• Petco
• Radio Shack
• Run by Foot Locker
• Sephora – a chain of cosmetics stores
• Shaws – a chain of supermarkets in New England
• Six02 − a retailer of women’s fitness paraphernalia and clothes
• Sports Authority
• Staples
• Star Market − an Albertsons subsidiary based in Alabama
• Texaco convenience stores
• Subway
• Toys R’ US
• United Supermarkets
• Unleashed by Petco
• Walgreens
• Wegmans

• Whole Foods
• Winn Dixie

The list is an interesting one, and it needs to be qualified because there are limitations on Apple Pay at those chains. You can use Apple Pay at Texaco or Chevron gas stations but not at the gas pump. There is a rumor that Chevron is working on a gas pump that’s compatible with Apple Pay.
Something else that is not clear is how many of these retailers’ locations Apple Pay is actually taken at. It is entirely possible that only a few locations of those chains take the service. Another problem is that many of these chains are franchise operations so it is entirely possible that some franchisees will take Apple Pay and some will not.

Media reports also create some controversy about Apple Pay’s acceptance. The New York Times reported that Albertsons, Lyft, Uber and Airbnb take Apple Pay, but those companies don’t appear on the official Apple Pay list of companies that accept it, although some Albertson’s subsidiaries, like Star Market, do appear on the Apple list.
Finding a store that takes Apple Pay may only be half the battle because a lot of banks don’t support the app yet. To make matters worse, banks appear to be very selective about which of their accounts support Apple Pay and which don’t. Some banks allow it for credit and debit cards, while others do not.
Another problem you can probably see with the list is that smaller and regional operators are willing to sign up but big names are not. It is also somewhat industry focused; for some reason, almost all sports retailers take Apple Pay, but no hotels seem to do so.

Banks Not Fully Supporting Apple Pay

Finding a store that takes Apple Pay may only be half the battle because a lot of banks don’t support the app yet. To make matters worse, banks appear to be very selective about which of their accounts support Apple Pay and which don’t. Some banks allow it for credit and debit cards, while others do not.

Banks and credit card companies accept Apple Pay for some things but not for others. American Express accepts Apple Pay for personal and small business credit cards but not for debit cards. Bank of America accepts Apple Pay for personal credit and debit cards but not for small business credit cards. It does accept Apple Pay for small business debit cards though. Barclaycard only accepts Apple Pay for personal credit cards but not for business cards.

Most of the major banks it seems are not accepting Apple Pay for small business credit cards. Capital One and Wells Fargo appear to be the only major banks that accept it for regular and small business credit and debit cards. So far US Bank seems to be the only major U.S. bank that accepts Apple Pay for all major kinds of credit cards.

 

What is even more troubling is that there is only one prepaid credit card that supports Apple Pay: one from Chase (NYSE: JPM). There is no corporate credit card that accepts Apple Pay according to Apple’s own website. I imagine this will change, but one interesting point is that many smaller local banks are interested in Apple Pay.

Apple Pay Finds Rough Going in UK and Canada

If you’re traveling, you had still better bring your old-fashioned American Express card because Apple Pay is not available outside the USA yet. There are media reports that Apple Pay plans to launch in the United Kingdom sometime in the first half of 2015. The service there is held up by resistance from banks.

There are also some predictions that Apple Pay will stay out of Canada. Itbusiness.ca writer Brian Jackson noted that Apple lacks institutional relationships with Canadian banks. He also pointed out that the structure of Canada’s banking system gives Apple no incentive to operate in that country.

Instead, Jackson thinks Canadian banks will try to create their own digital wallets so they can squeeze more money out of transactions. Jackson reported that two Canadian banks, TD Bank and PC Financial, have already created their own digital wallet called Ugo Mobile, which works on Android and BlackBerry devices but not with Apple. Ugo has the interesting advantage of being able to integrate with loyalty card programs.

Apple Pay’s experience is showing us that the real challenge in digital wallets might be to get banks and retailers to go along with them. The public might be more accepting of this innovation than those in the business are.