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.
Just to sell phones? Must be something Hillary said.
You will never get me to believe Apple isn’t getting a piece of the action.
Just suggesting a photo id is racist. I’m reporting you.
Definitely a superior technology. Can’t beat lots of tape surface to reduce noise and preserve dynamic range.
I just threw out one of those a few months ago. Same model, same nice shape.
I won’t be getting on board with Apple anything.
We use Ipads at work (required) and I hate the damned thing. Wish I could throw that out too.
“the numerous builtin benefits of using a credit card “
Yeah, it’s a choice between paying for those benefits, or using a free NFC system that doesn’t give or charge for those benefits.
People would probably use the CC for ‘uncertain’ sales and the cheaper merchant-provided NFC for mundane purchases.
Interestingly merchants would effectively be able to pass CC costs on to the CC user- which they aren’t allowed to do now.
I agree. Besides, I pay cash for almost everything that’s not online anyway.
They have every right to do this. I myself would rather see a retailer-centric system succeed than a Wall St banks + Apple system
Too bad, Gay. You are missing out on the best mobile ecology that exists currently.
OTOH, near field technologies look to be very dangerous and the hutspa of Wallyworld and the other retailers that we will let them blythly debit our bank accounts without a physical password is illogical.
Mind you, I have no love for the banking clowns but why should I trade one set of clowns for another set? I might if they give enough discount, though.
So, it comes down to what we, the consumer, trust and what’s in it for us rather than what’s in it for Wallyworld or the banks.
Look, they all should do what they are doing now — take all forms of payment without discrimination. Let the best technology be decided by the end user rather than the illogical egos of hired managers.
1. Allows merchants to track all of your purchases (ApplePay and Google Wallet use a random token which uses a different code for every transaction and can't be tracked).
2. Can't use credit or debit cards.
3. Pulls money straight from your savings or checking account and has NO LEGAL PROTECTIONS FOR FRAUDULENT PURCHASES (unlike credit and debit cards).
4. Promises to store all of your sensitive financial information “in the cloud.”
I don't think I would want you in charge of my monies with your perspective.
“A more secure way to pay. CurrentC will provide a more secure payment experience than traditional methods by storing users sensitive financial information in its cloud vault rather than locally on the mobile device. Furthermore, the application uses a token placeholder to facilitate transactions instead of constantly passing the data between the user, merchant and financial institution.”
http://www.nfcworld.com/2014/09/03/331179/retailer-owned-payments-venture-mcx-unveils-currentc-brand/ By the way, Apple does get a small portion of the transaction, but it's also responsible for the portable fingerprint authentication system and ApplePay environment. However, it's getting its cut from Visa/MC/Discover/AmEx and not the vendors.
There is an encrypted area in the A8 chip that securely holds sensitive information, in case you were curious.
You have ZERO evidence for that FUD claim, gunsequalfreedom, none at all. Why are you lying? Apple Pay doesn't even go through Apple servers. YOUR CLAIM IS TOTAL APPLE BASHING IDIOCY.
All based on years of expert evaluation, I assure you.
There is an encrypted area in the A8 chip that securely holds sensitive information, in case you were curious.
= = = = = = = = = = = =
From my layman - albeit a Cynical one - point of view, I seem to think that if a ‘man’ made it, a ‘man’ can open it.
About the only way my ‘Crypto’ mind sees it working is if you program and encrypt it yourself.
Like they say the ONLY way for 3 people to keep a secret is to ‘kill’ two of them. <: <:
If you want on or off the Mac Ping List, Freepmail me.
you know this how? I’ve been using it already and it’s blazingly fast and nothing has been lost.
Don’t know where you’ve been using it... would be interested to know.
Hoss
Funny... I thought Apple Pay was just released... kinda hard to have "years of expert evaluation" on a product/service that's as recent as the past several weeks.
But, if you've had issues using Apple Pay, please share!
Hoss
Is this going to be Crib Death for Apple Pay and end up like Firewire and Thunderbolt?...
...I hope it withers and dies.
******************************************************************************************************
Jeez, you seem like a BetaMax and HD-DVD kind of guy. Apple Pay is going to be VERY successful. I deal with CVS and every time I fill a prescription there I’ll try to use Apple Pay to pay from my bank’s “debit card”. When they tell me they don’t accept Apple Pay with its minimal cost (from CVS’ perspective) I’ll whip out the old American Express card (which costs CVS a relative “arm and a leg”) and let them eat the costs.
CVS, as it always has done, will bend to its customers’ desires and accept Apple Pay. I predict that the not-ready-for-prime-time CurrentC will have a relatively short life span before it is discontinued and fades from the marketplace.
“ApplePay and Google Wallet use a random token which uses a different code for every transaction and can’t be tracked”
Do you really believe that? I mean, I can think of a hundred ways for those companies to share information about your purchases. I know, I’ve built some of those systems. There is no way on God’s green Earth that they will forego the revenue from such data sharing. No way. Consumer purchase data is the biggest revenue generator.
The exact same tings said of ApplePay today were said about credit card transactions 25 years ago: “They are secure”, “No worries”, “Can’t be tracked”, etc.
These merchants are being totally stupid. They are cutting off business from millions of Pay users and it won't cost them anything because the fees that Apple get comes from the credit card companies and the banks. Here is what Apple has to say on their FAQ page on Pay:
"How much does it cost to accept Apple Pay?The banks and credit card companies are quite happy to pay Apple's nominal fees because of the reduction in fraud they will see because it is impossible to steal a credit card number or to steal a card from Pay users or for merchants to keep the Pay and charge the number again later, nor can the Pay user claim they did not make the transaction. The same cannot be said for standard NFC cards.Apple does not charge users, merchants or developers to use Apple Pay for payments. Your credit and debit transactions will continue to be handled by the payment networks.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.