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A year after its launch, Apple Pay is still struggling to gain a foothold in the mainstream payment market.

According to a new report from Bloomberg, the mobile payment service accounted for just one percent of retail transactions in the United States thanks to slow user adoption and a lack of compatible payment terminals.

After hitting 1 million activations shortly after its launch in October 2014, Apple CEO Tim Cook declared the payment system a success. As of August 2015, however, Apple Pay was already showing signs of decline, as the percentage of Apple customers utilizing the service dropped from 15.1 percent to 13.1 percent between the first and second quarters of the year.

Business Insider reported in August that a number of factors were accountable for the slump, including customer satisfaction with a traditional method of payment, a lack of payment terminals and a lack of compatible devices. As of March, only 40 percent of iPhone users had upgraded to the Apple Pay-enabled iPhone 6 or iPhone 6 Plus, and as of April less than a quarter of those users had actually tried the service.

While it is possible that demand for Apple Pay will pick up as more users upgrade to the new iPhone, the service will now be up against some serious competition from new mobile payment options, including Samsung Pay and Google’s Android Pay. Unlike Apple and Android Pay, which require NFC payment terminals, Samsung Pay comes with magnetic strip technology that allows it to be accepted nearly anywhere a customer would swipe their credit card.

However, one factor that may play to Apple’s favor is the switch from magnetic-stripe cards to chip-based technology, which requires a longer insertion into a given payment portal. Should the chips slow checkout times, Apple Pay and other mobile payment options may catch a boost as consumers look to cut the wait. The shift to chip-based cards, which is currently under way through the distribution of new cards and installation of new payment terminals, is expected to be completed within the next two years.

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