Posted on 10/26/2014 3:20:18 PM PDT by ImJustAnotherOkie
There's a lot of hype around Apple Pay right now, but not everyone is on board with the new mobile payments system. In fact, a significant number of merchants, including heavyweights like Walmart, Kmart, 7-Eleven, and Best Buy, are in outright competition with Apple Pay. The retailers, through a joint venture formed in 2012, are building their own mobile payment app, called CurrentC. It's expected to launch next year. In the meantime, these retailers have no intention to support Apple Pay.
Following Apple's announcement last month, both Wal-Mart and Best Buy confirmed to The Wall Street Journal that customers would not be able to use the system in their stores. Earlier this week, a leaked internal memo from Rite Aid revealed that the drug store chain was modifying or disabling its NFC readers, preventing access to Apple Pay (and other systems, like Google Wallet and wireless carrier-backed SoftCard, which also depend on the contact-less technology). A representative later confirmed the news to iMore. Today, CVS followed suit and shut out Apple Pay, according to reports. Both will support CurrentC on launch next year. The companies have not immediately returned requests for comment.
"Moves by Rite Aid and CVS effectively block Apple Pay in their stores "
The fight for control of the mobile payments market is opening a rift between merchants and banks. Banks and credit card companies have enthusiastically supported Apple Pay, seeing it as a way to increase the number of purchases people make with their credit cards. But Apple has struggled to get merchants on board. A quick look at Apple's website explaining the service highlights just 34 retail partners that support the system. Eight of those are different flavors of Foot Locker. One is Apple itself.
"Retailers are seeking to use mobile payments to cut out credit card companies"
Meanwhile, not a single bank backs CurrentC. That's because the system is designed to cut out the middleman — and credit card processing fees. The app, when it launches next year, won't replace your plastic credit card. Instead, it will withdraw directly from your checking account when you pay at the cash register with a QR code displayed on your Android or iOS device. Or you can pay with gift cards and "select store debit and credit cards" (read: just the ones issued in partnership with CurrentC backers). In exchange for not using your credit card, the retailers plan to offer exclusive coupons and promotions to those who use the app.
CurrentC MCX
The notion of a widespread payment system controlled by retailers and free of credit card processing fees is very appealing to merchants. It should come as no surprise, then, that, in addition to Wal-Mart, the largest retailer in the world, CurrentC's partners include Gap, Old Navy, 7-Eleven, Kohls, Lowes, Dunkin' Donuts, Sam's Club, Sears, Kmart, Bed, Bath & Beyond, Banana Republic, Stop & Shop, and Wendy's — as well nearly all the major US gas station chains — among its ranks.
We'll have to wait until next year to see how well CurrentC can compete in the crowded battle for control of mobile payments, but until then, don't be surprised to see more retailers follow Rite Aid and CVS and shut off their NFC readers.
Correction: This article originally stated that Apple Pay's 34 official retail partners included five Foot Locker brands. In fact, eight brands owned by Foot Locker are on the list: Foot Locker, Lady Foot Locker, Foot Locker Kids, Footaction, Champs, House of Hoops, Run, and Six:02.
Apple is acting like the mob, I don't know what percentage is being kicked back to Apple probably from Visa's 2-3% or if this is on top of that.
To my thinking chip level security is pretty damn difficult to overcome when it get's cracked which it will. I don't like NFC one damn bit.
I hope it withers and dies.
VHS versus Beta.
Nah.... just folks trying to push their format. Users (as in all market driven decisions) will force a change.
From another article on the subject:
Former Walmart CEO Lee Scott is reported to have said, “I don’t know that MCX will succeed, and I don’t care. As long as Visa suffers.”
Doubtful. Banks in the US are required by law to be 70% onto the chip technology by October 2015. Unlike Europe which uses chip and pin, the US will be using chip and signature.
I do think the chip technology is a little more secure than our old mag stripe cards.
Icon Port?
Icon Porn?
The woodgrain metal enclosure was a nice touch.
The door in front makes a perfect Hot Wheels garage too.
Oh please, this is the stupidest thing. A vast conspiracy to fight one particular method of payment. Sorry to disappoint, but these readers have been broken for ages. With the rollout of ApplePay, many Google Wallet users (as well as SmartPass dongle holders, etc) were really hopeful that the mass of machines that have been broken for the longest time would finally be fixed.
Shocker, they weren’t. Mostly because most stores don’t replace POS terminals until they are entirely no longer functional. They are expensive gadgets, and whoopie if the NFC reader is broken, the customer will whip out the credit or debit card that is attached to anyway.
As for security - how secure is your credit card? (Hint: Not at all.) NFC is an order of magnitude more secure than any normal US credit card or debit card. The NFC defeats one of the most common credit & debit card frauds currently in action: that of taking a video of your debit card and entering the pin while you are in line at the market.
If my Credit Card is compromised, I can get another one. I check mine daily. My Debit Card stays parked.
That is also why you have Paypal.
Those beta decks were the best sound recorders you could ever hope for.
Yes, simple solution. Mine as well.
Most fraud could be stopped by asking for a photo ID and matching picture and signature. Racist I guess. Besides, if credit card companies asked for it, then hard to deny it at the polling place.
I've never seen fraud prevented by asking for ID. I have seen quite a lot of fraud prevented by asking for the card and typing in the last four digits on the card. Fake IDs are easier to come by than fake credit cards impressed with the proper credit card number.
To my thinking chip level security is pretty damn difficult to overcome when it get's cracked which it will. I don't like NFC one damn bit.
As for NFC, it is supposed to be insecure. It can be eavesdropped, it can be jammed, but it should not be susceptible to man in the middle. Of course the client could be flawed and get fooled into accepting invalid server credentials, but that is fixable. In short, there is no chip level security, no link level security, only application level security and that can be fixed if it is flawed.
“The app, when it launches next year, won’t replace your plastic credit card. Instead, it will withdraw directly from your checking account”
Which means you lose the numerous builtin benefits of using a credit card in uncertain situations. The credit card company is your friend if things don’t go right, especially online purchases. I’ve never failed to get my money back from a CC company on a bad online transaction. Only a modicum of documentation is needed, like an email receipt and a statement the item was broken, faulty, not what was ordered, etc.
Except for very rare situations, like autopaying my Xcel gas bill because they won’t take a credit card, I NEVER allow direct deduction from my bank account.
That little plastic credit card still looks pretty good.
What’s that they say about a fool and his money?
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