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Apple Pay is already having a significant impact at one major retailer

Published Nov 10th, 2014 8:20AM EST
Apple Pay Whole Foods Sales
Image: Apple Inc.

If you’re looking for more evidence that Apple Pay is already a big success, look no further than a recent estimate put out by Mike Dudas, the cofounder of mobile payments rewards startup Button and a former executive at Google Wallet. Using data from both regulatory filings and from Whole Foods CIO Jason Buechel, Dudas estimates that Apple Pay has accounted for roughly 1% of all transactions at Whole Foods since its launch three weeks ago.

RELATED: It only took Apple Pay a week to become more popular than all other NFC payment platforms combined

While 1% may not sound like much, it’s actually a surprisingly strong number given that Apple Pay is less than a month old and that mobile payments have never really made any significant dent in the percentages of total sales at major retailers. The 1% figure translates to roughly 150,000 transactions total, or around $6 million worth of goods if we assume all these transactions average $40 each, which Dudas says happens to be the average basket size of a Whole Foods shopping trip.

According to a report by The Financial Times, Apple will make $0.15 for every $100 worth of goods that people buy with Apple Pay — that means that in just the past three or so weeks, Apple has made an estimated $9,000 from Apple Pay transactions from just one retailer alone. When you consider how many more retailers are supporting Apple Pay and the fact that Apple Pay activated more than 1 million credit cards after just one week of launching, you can see that this has the potential to be another major cash cow for the company.

Prior to joining BGR as News Editor, Brad Reed spent five years covering the wireless industry for Network World. His first smartphone was a BlackBerry but he has since become a loyal Android user.