This past weekend, Rite Aid RAD -2.06% Pharmacy and CVS Pharmacy blocked Apple AAPL +0.37% Pay. Apple Pay is a new digital wallet service that allows users to pay for goods using certain Apple devices that wirelessly communicate with point of sale systems using near field communication (NFC) antennas.
Why are some of the largest retailers across the country blocking Apple Pay? The most likely explanation is because they have formed a consortium called the Merchant Customer Exchange (MCX), which is building a rival system next year called CurrentC. The MCX consortium has been developing the CurrentC system since 2012. Rite Aid and CVS are part of the MCX consortium. CurrentC enables merchants to monitor the shopping habits of its users, making it easier to target customers with loyalty programs using that kind of data. Apple Pay keeps transactions private, making it difficult for retailers to track purchasing history.
To help merchants save MONEY on the fees incurred per transaction, CurrentC will be connected to customer debit accounts. NFC will not be required to use CurrentC because the user scans a QR code on the screen to complete the payment. Some of the other retailers that are a part of the MCX consortium include Walmart, Target, Kmart, Best Buy BBY -0.03%, Gap GPS -0.67%, Sam’s Club, Lowe’s, Bed Bath & Beyond and Sears. CurrentC will be accepted at 110,000 merchant locations in the U.S.
Several Rite Aid and CVS customers said that they were able to pay for products using Apple Pay last week. This is because the two companies installed NFC payment point of sales systems to support Google Wallet and other mobile payment services a couple of years ago. Apple Pay essentially worked unofficially at CVS and Rite Aid stores until the two retail companies fully disabled it over the weekend.
CurrentC can be downloaded from the Apple App Store now, but the description says that it is in invite-only mode. Here is the description of the app:
With CurrentC you’ll be able to use your phone to pay for things through your checking account, and select merchant gift cards, credit and debit accounts. Add your existing merchant program rewards accounts and you’ll continue earning loyalty points and rewards with every purchase. It’ll help you keep track of all your receipts and make returns easier. And in the not-so-distant future, it’ll even carry all your coupons and deliver exclusive offers to help you save.
CurrentC processes every transaction across multiple secure checkpoints—each meeting or exceeding industry security standards. Sensitive FINANCIAL data is never stored on your phone or shared during a merchant transaction—so you can pay with peace of mind.
Why are some of the largest retailers across the country blocking Apple Pay? The most likely explanation is because they have formed a consortium called the Merchant Customer Exchange (MCX), which is building a rival system next year called CurrentC. The MCX consortium has been developing the CurrentC system since 2012. Rite Aid and CVS are part of the MCX consortium. CurrentC enables merchants to monitor the shopping habits of its users, making it easier to target customers with loyalty programs using that kind of data. Apple Pay keeps transactions private, making it difficult for retailers to track purchasing history.
To help merchants save MONEY on the fees incurred per transaction, CurrentC will be connected to customer debit accounts. NFC will not be required to use CurrentC because the user scans a QR code on the screen to complete the payment. Some of the other retailers that are a part of the MCX consortium include Walmart, Target, Kmart, Best Buy BBY -0.03%, Gap GPS -0.67%, Sam’s Club, Lowe’s, Bed Bath & Beyond and Sears. CurrentC will be accepted at 110,000 merchant locations in the U.S.
Several Rite Aid and CVS customers said that they were able to pay for products using Apple Pay last week. This is because the two companies installed NFC payment point of sales systems to support Google Wallet and other mobile payment services a couple of years ago. Apple Pay essentially worked unofficially at CVS and Rite Aid stores until the two retail companies fully disabled it over the weekend.
CurrentC can be downloaded from the Apple App Store now, but the description says that it is in invite-only mode. Here is the description of the app:
With CurrentC you’ll be able to use your phone to pay for things through your checking account, and select merchant gift cards, credit and debit accounts. Add your existing merchant program rewards accounts and you’ll continue earning loyalty points and rewards with every purchase. It’ll help you keep track of all your receipts and make returns easier. And in the not-so-distant future, it’ll even carry all your coupons and deliver exclusive offers to help you save.
CurrentC processes every transaction across multiple secure checkpoints—each meeting or exceeding industry security standards. Sensitive FINANCIAL data is never stored on your phone or shared during a merchant transaction—so you can pay with peace of mind.
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