The Trick Apple Is Using to Enroll iPhone Users in Apple Pay

April 5, 2018, Written By Bill Hardekopf

Companies go to great lengths to attract new customers, but sometimes the simplest strategies are the most effective. Apple is using the “less is more” approach with their latest mobile wallet campaign.

If users do not enroll in Apple Pay when setting up their phones, they now see a red notification on their Settings app.

Smartphone users are conditioned to open an app when they see a such a notification. Popular apps such as Facebook, Messenger and Snapchat, as well as the ones for your text messages and emails, all use the same red number bubble to indicate activity. Apple is taking advantage of this mindset by making it appear that the iPhone setup remains unfinished.

According to The Wall Street Journal, “The strategy has worked with some, but is irritating others who say it is heavy-handed.”

While having unfinished business may not seem like a big issue, using a tactic like this could have larger ramifications for consumers. Users who choose to ignore the notification may not notice when an update is available or when the phone needs to undergo maintenance. There is no differentiation between a vital message and “Would you like to try this service.”

Has the tactic worked? Loup Ventures reported that Apple Pay enrollment increased to two million users per week in September, just after the launch of iOS 11. This is a significant increase from the 750,000 users per week the wallet was experiencing. However, only 16% of iPhone users have activated Apple Pay, leaving plenty of room for growth in the future.



The information contained within this article was accurate as of April 5, 2018. For up-to-date
information on any of the terms, cards or offers mentioned above, visit the issuer's website.


About Bill Hardekopf

Bill Hardekopf is the CEO of LowCards.com and covers the credit card industry from all perspectives. Bill has been involved with personal finance for over 15 years. He is a frequent contributor to Forbes, The Street and The Christian Science Monitor.
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