Applepay is one of Apple’s biggest projects that its pushing in its new iPhone 6 line-up to promote both security and ease of pay. However, not all retailers are on side with that given that Applepay relies on Credit Cards, who have not been popular with many retailers for years.
What has brought this to a head of late is that two companies have decided to stop accepting Apple Pay, very possibly because of their deals with Merchant Customer Exchange (MCX) and their CurrentC. Rite Aid and CVS Health have said they won’t take Apple Pay despite have devices already that could accept it. It appears that in the CurrentC deal that they supported there was an exclusivity clause that may be affecting both right now as well as others such as Walmart.
MCX came about from companies wanting to get around the major credit cards 2-3% that are taken out on each transaction. There is a huge list of companies who have backed it that make up over 110,000 retail locations in the United States of America and do over $1 trillion in payments annually, much of it on credit cards.
CurrentC works by putting in your bank information into an iOS or Android app and storing it there. Then, when the customer goes to purchase they request to pay with CurrentC and opens up their phone and the app. They use the codescanner to scan a QR code shown on the cashier’s screen, or sometimes the app might generate a code and the cashier scans it. There is more details with what it tracks and how it processes information that make the technology, expected to appear in 2015, pretty questionable.
Apple Pay is a lot easier in its current form for users to use and seems to be more securely set up. If this was an exclusivity reason that they backed out, when it expires it may be that companies move more to it. If it was to show solidarity, than if Apple Pay gains traction companies may quickly back out – especially those who already have the technology for Apple Pay such as Rite Aid and CVS Health.
I strongly recommend reading TechCrunch’s report if you want to learn more about the issue as they go indepth with the situation on CurrentC: http://techcrunch.com/2014/10/25/currentc/