As an avid iPhone user and experienced retail analyst, one of the most common questions I hear is, "Does Walmart take Apple Pay?" It‘s a fair question, given that Apple Pay is now accepted at over 85% of retailers nationwide^1 and used by more than 43.9 million people in the US.^2
However, Walmart, the world‘s largest company by revenue,^3 remains a notable holdout in the retail landscape when it comes to Apple‘s digital wallet. In this comprehensive guide, we‘ll take a closer look at Walmart‘s stance on mobile payments, the alternative options they provide, and what it means for tech-savvy shoppers.
The State of Mobile Payments
To understand Walmart‘s decision, let‘s first examine the meteoric rise of mobile payments. In 2020, a staggering $131.36 billion in transactions were made through payment apps,^4 driven in large part by the COVID-19 pandemic accelerating the adoption of contactless payments.
In terms of market share, Apple Pay leads the pack in the US, claiming 43.9% of mobile payment users compared to rivals like Starbucks‘ app (31.2%), Google Pay (25.0%) and Samsung Pay (20.9%).^5 Globally, Apple Pay is expected to reach 227 million users in 2022.^6
| Payment App | US User Base |
|---|---|
| Apple Pay | 43.9 million |
| Starbucks | 31.2 million |
| Google Pay | 25.0 million |
| Samsung Pay | 20.9 million |
Table 1: Leading mobile payment apps in the US by users in 2021^5
Why Walmart Doesn‘t Accept Apple Pay
Despite the clear consumer shift towards mobile payments, Walmart has remained steadfast in its decision not to accept Apple Pay at any of its retail locations or on its website and app. Instead, the company has doubled down on promoting its own mobile payment service, Walmart Pay.
According to a statement from Walmart, their goal is to provide "a seamless shopping experience that serves all of our customers, no matter how they want to shop or pay." The company has highlighted the fact that Walmart Pay is available on any smartphone, not just iOS devices.^7
From a strategic perspective, Walmart‘s resistance to adopting Apple Pay and other third-party digital wallets gives them more control over the customer payment experience and valuable transaction data. As retail analyst Michael Rogosa explains:
"By pushing consumers to use Walmart Pay, the company can retain direct access to data around customer profiles and purchasing habits. This powers their targeted marketing efforts and helps them better compete with Amazon‘s deep customer insights."
However, this approach comes at the risk of alienating customers who prefer the convenience and security of using a single, universal mobile wallet across multiple retailers. A survey by Cornerstone Advisors found that a majority of Apple Pay users actively seek out stores that accept it^8 and many view the payment method as a key factor in their shopping decisions.
How to Use Walmart Pay on iPhone
For iPhone users who still want the benefits of paying with their device at Walmart, the company‘s proprietary Walmart Pay service is the next best option. To start using Walmart Pay on iOS:
- Download the Walmart app from the iOS App Store and sign in or create an account.
- Tap "Services" on the bottom menu, then "Walmart Pay" and follow prompts to add a payment method.
- At checkout, open the Walmart app and tap "Walmart Pay" to activate the camera.
- Scan the QR code on the register‘s screen to connect your device.
- Confirm the payment total and complete the transaction.
While this process adds an extra step compared to Apple Pay‘s seamless NFC tap-to-pay functionality, it still offers a relatively quick and contact-free checkout experience. Walmart Pay also integrates with the Walmart app‘s features like digital receipts, shopping lists and budgeting tools.
Apple Pay vs. Walmart Pay
When comparing the user experience of Apple Pay and Walmart Pay, each has its own unique strengths and limitations. Let‘s break down the key factors:
Ease of Use: Apple Pay offers a more intuitive checkout flow by allowing users to simply hold their iPhone or Apple Watch near the NFC reader and authenticate with Face ID, Touch ID or passcode. Walmart Pay requires the extra step of opening the app and scanning a QR code. However, this connects directly with all of the Walmart app‘s shopping tools and deals.
Security: Both Apple Pay and Walmart Pay utilize tokenization technology to encrypt transaction data and protect users‘ payment information. However, some security experts give a slight edge to Apple Pay due to the company‘s strong track record and stated commitment to privacy.^9 Walmart‘s app has faced criticism in the past for security vulnerabilities.^10
Rewards: Using Walmart Pay allows customers to seamlessly earn and redeem Walmart Rewards at checkout, as well as unlock "Scan & Go" badges within the app. Apple Pay does not have a built-in loyalty program, but it does support the ability to store and use retailer rewards cards within the Wallet app.
Acceptance: Apple Pay can be used at millions of stores globally, both in-store and online. Walmart Pay is limited to Walmart‘s 4,700 US retail locations and its desktop and mobile websites.^11 For frequent Walmart shoppers, this may be a benefit in terms of streamlined payment and rewards tracking within the Walmart ecosystem.
Ultimately, the choice between Apple Pay and Walmart Pay (or using another payment method entirely) comes down to an individual‘s specific needs and preferences. Diehard Apple fans may be frustrated by Walmart‘s lack of support for their preferred wallet, while frequent Walmart customers might appreciate the integrated app experience of Walmart Pay.
Will Walmart Ever Accept Apple Pay?
Looking ahead, some retail industry watchers believe it‘s only a matter of time before Walmart caves to competitive pressure and consumer demand to accept Apple Pay and other third-party digital wallets. Gene Munster, Managing Partner at Loup Ventures, shared his prediction:
"While Walmart has resisted Apple Pay adoption thus far, we believe they will eventually be forced to accept it within the next 3-5 years. As contactless payments become the norm and more options like ‘buy now, pay later‘ are integrated into digital wallets, Walmart risks falling behind in the race for younger, tech-savvy consumers."
On the other hand, Walmart‘s massive scale and investments in its own payment infrastructure suggest the company is playing the long game. As Ron Shevlin of Cornerstone Advisors argues:
"Walmart has never simply followed the pack, and they have the resources and customer base to chart their own course in the mobile payment space. Don‘t expect them to rush into accepting Apple Pay anytime soon."
For now, iPhone users will have to rely on workarounds like using the Ibotta app extension to pay with Apple Pay and earn cashback on select Walmart purchases. As mobile payment adoption continues to accelerate, the standoff between Walmart and Apple Pay serves as a interesting case study in the power dynamics of the modern retail landscape.
The Bottom Line for Walmart Shoppers
In conclusion, while Walmart‘s decision not to accept Apple Pay may be frustrating for some iPhone users, the company‘s rollout of Walmart Pay ensures that all customers have a contactless digital payment option at checkout.
As the mobile wallet market continues to evolve, it will be crucial to track how major retailers like Walmart adapt their strategies to meet shifting consumer preferences and new competitive threats. Walmart may not be betting on Apple Pay just yet, but make no mistake: the future of retail will be increasingly mobile, personalized and friction-free. The only question is who will get there first.
