Apple Pay (Pay) and Google Wallet and CurrentC? WTF Rite-Aid?

[iacas]

http://www.theverge.com/2014/10/25/7069863/retailers-are-disabling-nfc-readers-to-shut-out-apple-pay

Quote:

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.

CurrentC, btw, withdraws money directly from your checking account (kind of like Target's card, which at least offers 5% off currently). That way they won't have to pay CC fees to the CC makers.

Good luck with that… Especially if Apple and Google decide to limit or restrict CurrentC from being available on their platforms. But they won't have to, IMO - who will want to use CurrentC? The stores will want you to use it.

P.S. CurrentC uses QR codes.

[jamo]

"That way they won't have to pay CC fees" is the key bit there. So Wal-Mart sees a benefit, I see nothing. Actually, scratch that. I wouldn't get AmEx points with CurrentC. So I get less than nothing unless CurrentC launches a benefits program on par with AmEx's.

[newtogolf]

Amex, VISA and MasterCard fees can be pretty significant for a small business or any business where margins are tight.

For a business that is already steeply discounting prices to win business (Walmart, K-Mart) it can put a decent dent into their gross margins so it makes sense for them to come up with their own payment method.  Amex is the least business friendly, taking up to 4% per transaction and it gets worse if you have a high incidence of charge backs.

As a consumer it doesn't really matter as long as I have the convenience of using whatever pay method I want to.

[iacas]

Amex, VISA and MasterCard fees can be pretty significant for a small business or any business where margins are tight.

This isn't a coalition of small businesses.

It's the megapowers. They do so many transactions and earn $0.73 or whatever at a time, that it's millions of dollars a year.

The thing is, it won't take much for that small CC fee to be lost if consumers avoid those stores for not supporting whatever.

Plus, the CC companies actually care (and have reason to care) about your security. Do you (general you, not you @newtogolf ) trust stores, given their hacks and break-ins lately, to have access to your DIRECT ACCOUNT information?

I do not.

As a consumer it doesn't really matter as long as I have the convenience of using whatever pay method I want to.

That's kind of the point. Retailers are still going to support letting you use a VISA. The stores will make no less money if you use a VISA via ApplePay or via swiping it manually.

CC companies are paying a tiny portion to Apple (like a quarter of 1% or something), but in exchange they're getting a) wider adoption of people using their CCs, and 2) added security - the retailer doesn't know your CC #, your name, etc. So if they're hacked, you're still okay.

This move is 100% anti-consumer and pro-MCX companies. It limits choice and weakens security.

[nevets88]

I wonder if Apple has enough numbers that if its users don't shop at non AP stores, it will do enough damage to the bottom line. It certainly has the right income demographic. We'll see.