Walmart and Best Buy reportedly have decided not to accept Apple Pay, the new mobile payment system developed by Apple.
Instead, Consumerist.com reports, "both retailers are getting behind a mobile technology group that’s owned by retailers, called the Merchant Customer Exchange. MCX is in turn launching a mobile wallet application called CurrentC coming in 2015, which will only require a software download instead of checkout scanners, and can be used on any iPhone or Android phone already in use, instead of just the new iPhone 6 and iPhone 6 Plus.
"CurrentC will connect to consumers’ checking accounts, retailer gift cards and some retail credit cards but won’t work with traditional credit cards."
The Washington Post writes that the decision by Walmart especially sets up "a high-profile race to define how Americans will pay for products in the future."
According to the Post, "The two giants hold tremendous sway over marketplace. Apple has put a smartphone in the hands of tens of millions of people in the United States and has partnered with a broad coalition of the country’s biggest banks, credit card companies and prominent retailers, including Disney, McDonald’s and Macy’s, to launch its new mobile payment system, called Apple Pay.
"Wal-Mart has a far bigger customer base — hundreds of millions of people shop at its stores every week. And the retailing giant is one of dozens of well-known brands that have rallied behind a different mobile payment method called CurrentC. Others include Target, 7-Eleven, Southwest Airlines, the Gap and Shell gas stations."
Instead, Consumerist.com reports, "both retailers are getting behind a mobile technology group that’s owned by retailers, called the Merchant Customer Exchange. MCX is in turn launching a mobile wallet application called CurrentC coming in 2015, which will only require a software download instead of checkout scanners, and can be used on any iPhone or Android phone already in use, instead of just the new iPhone 6 and iPhone 6 Plus.
"CurrentC will connect to consumers’ checking accounts, retailer gift cards and some retail credit cards but won’t work with traditional credit cards."
The Washington Post writes that the decision by Walmart especially sets up "a high-profile race to define how Americans will pay for products in the future."
According to the Post, "The two giants hold tremendous sway over marketplace. Apple has put a smartphone in the hands of tens of millions of people in the United States and has partnered with a broad coalition of the country’s biggest banks, credit card companies and prominent retailers, including Disney, McDonald’s and Macy’s, to launch its new mobile payment system, called Apple Pay.
"Wal-Mart has a far bigger customer base — hundreds of millions of people shop at its stores every week. And the retailing giant is one of dozens of well-known brands that have rallied behind a different mobile payment method called CurrentC. Others include Target, 7-Eleven, Southwest Airlines, the Gap and Shell gas stations."
- KC's View:
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I noticed the other day that even before the new iPhone 6 and iPhone 6 Plus have become available, Walmart has put them on sale, undercutting Apple on price. I wonder if at any level Apple can apply pressure to Walmart to accept its mobile payment option (in addition to CurrentC) if it wants to continue to sell Apple products.
I also wonder if some retailers - like the ones that compete with Walmart, which is pretty much everybody - would rather work with Apple than do business with CurrentC.
It seems to me that retailers probably ought to offer as many payment options as possible, so that consumers can use what they want to use, as opposed to what the retailer prefers.
