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Apple Responds to CVS/Rite Aid Controversy: 'Overwhelmingly Positive' Response, Working to Add Merchants
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Thanks to this story, I've now got a list of retailers I will no longer drop a nickel in.
On the West Coast of Canada ( even thoughPay is not available yet )
Olive Garden
7-Eleven
Walmart
Old Navy
Sears
Esso/Exon
Shell
Wendy's
Target
Gap
Best Buy
Chili's
Just because they are part of MCX doesn't necessarily mean that they won't accept NFC payments.
Not really. Because if consumers can't download it, the MCX consortium will die faster. I would rather have it gone entirely.
ApplePay give retailers/consumers the option of loyalty cards. Consumer can opt-in to programs that give retailers the ability to mine their data.
I guess that depends on the area. I have the total opposite perception of CVS to Walgreens. In my mind it's actually kind of comparable to one of the nicer Target stores compared to a depressing Wal-Mart.
I do think it's sad that some of these stores that I favor are planning to use this system. I don't think I'm being overly optimistic though when I imagine that this extremely called-for ridicule and backlash is absolutely going to make companies rethink this whole system.
Also, Apple didn't invent computers, mp3 players, smartphones or tablets.
OP didn't imply Apple invented NFC, you inferred it.
But the smart play for Apple is to play the long game and let it die a slow painful death on the vine. If they pull it, the narrative switches to Apple is trying to stifle competition.
When you have the stronger hand, it's much more prudent to take to the high road. Apple will just stay positive about it keep the message points around privacy, security and giving the customer options.
Around here, WalMart is open 24x7, making it convenient when you need something after most retailers close for the evening. They also have a house brand of flavored water that I like. I'll just pay cash for that now.
Here's my short summary of the situation and my predictions:
CVS, WalMart, Rite Aid, Lowe's, etc entered into MCX and signed multi-year exclusivity arrangements years ago, dating back to 2012 in some cases.
NFC transactions were such a non-entity until Apple Pay that the fact that Google Wallet and NFC credit card worked wasn't even a blip on the radar. Apple Pay and the media buzz around it drew attention to the fact that it was working at some of the member's stores. This caused MCX to wave the exclusivity agreement and tell them to shut NFC down.
My guess is that CVS is well and truly stuck. They likely want to support NFC, but can't since it violates their exclusivity agreement. And, after the very public backlash, I'd imagine that most of the MCX partners are collectively crapping their pants, not wanting to be in that same, glaring spotlight. The ones who never enabled NFC on their terminals are probably happy that they made that decision. CVS is taking almost all the heat on this. It will be interesting to see how many MCX members cave when their agreements expire. My prediction is that Target - with one foot already out the door - is just chomping at the bit to embrace the NFC payments as much as they have embraced in-app payments.
Once the general public learns these basic facts, they won't want anything to do with CurrentC:
- CurrentC is the competing mobile payment technology that these merchants are speaking of.
- CurrentC requires giving your your bank account info, social security number, and driver's license number to MCX establish an account - an identity thief's wet dream
- It debits your bank account via NCH, which has almost no consumer protections covering unauthorized transactions
- Nearly 25% of the CurrentC proponents/MCX members have been breached in recent years, losing customer records
- Your purchases, health info (!), and other data will be shared to augment their marketing efforts (you are the product)
Once they additionally learn that Apple Pay and Google Wallet offer much more security than swiping a card OR using chip & pin, and that Apple isn't tracking/selling your purchase history, and when they remember that fraud protections with Apple Pay/Google Wallet are the same that they have always expected, they will want to use those technologies.
Now, you need to remember that MCX isn't trying to pick a fight with Apple & Google, but rather the credit card companies.. In reality, the MCX merchants are aligning themselves against Apple, Google, Mastercard, Visa, and American Express. Even for Walmart, that's a pretty big gang to stare down. That group could not only remove CurrentC from their App Stores and virtually ensure that CurrentC dies, but they could also restrict or outright prohibit them from accepting the overwhelming majority of credit cards worldwide. I'm not saying that either of these outcomes are likely -- there is, after all, a lot of money involved here -- but they are certainly taking a serious gamble with dire circumstances amongst the possibilities. Remember that the push for chip and pin in 2015 is NOT due to legislation or regulation, but rather the credit card folks saying that liability for fraud will be transferred to the merchants themselves. Nothing says that they can't require NFC as a part of that requirement as well.
If they insist on sticking with this, in a few years, the overwhelming majority of smartphone owners will not only know how ruinous CurrentC could be (has been?) to their financial well being, but will likely all have upgraded NFC-capable phones and will have been using them.
My prediction: CurrentC will fold as merchants cave to the consumer pressure and abandon MCX. Most, if not all, will get on board with secure payment technology, which at the moment means Apple Pay, and, to a lesser extent, Google Wallet.
Actually, the person I was replying to said only Apple could make tech like this, and my response was truthful in stating Google has been doing this since 2011 at least.
Reading is fundamental. Nice try, though.
The thing that baffles me is that these companies are dis-allowing NFC payments but will still allow the plastic card swipe... In the end, the store has to pay the CC company the same for the transaction whether done with plastic or over NFC.
Unfortunately, since not every store in the US accepts NFC, I'll have my card with me. If I go to one of these places or other places without NFC, I'll just be using plastic anyhow. I don't plan on boycotting these places but they will not be a first or second choice any more.
I can say (And I don't expect anyone to dispute) that dis-allowing NFC will have no positive effect on a company's bottom line. Even if these places don't lose any customers, does anyone think they'll gain any? Even if consumers take my approach and are less likely to shop there, I feel like that loss will be substantial by itself.
I'm just really confused... Not even on the thought process of using CurrentC, but on the removal of NFC.
Just a fun fact - wish we pushed it more like Europe.
We've (The US has) been jacking around with NFC since 1997 at least!!!
https://www.speedpass.com/
In the US, Exxon/Mobil (VeriFone) were the pioneers of wide-spread (or at least wider-spread NFC deployment)
Unfortunately, since not every store in the US accepts NFC, I'll have my card with me. If I go to one of these places or other places without NFC, I'll just be using plastic anyhow. I don't plan on boycotting these places but they will not be a first or second choice any more.
I can say (And I don't expect anyone to dispute) that dis-allowing NFC will have no positive effect on a company's bottom line. Even if these places don't lose any customers, does anyone think they'll gain any? Even if consumers take my approach and are less likely to shop there, I feel like that loss will be substantial by itself.
I'm just really confused... Not even on the thought process of using CurrentC, but on the removal of NFC.
Just a fun fact - wish we pushed it more like Europe.
We've (The US has) been jacking around with NFC since 1997 at least!!!
https://www.speedpass.com/
In the US, Exxon/Mobil (VeriFone) were the pioneers of wide-spread (or at least wider-spread NFC deployment)
Apple pay simplifies and makes the client side even more secure; the payment side of NFC is the same and certainly not Google or Samsung's brainchild... It works outside of any smart device being involved at all.
Android NFC solutions were crap, and that's why nobody used them. Now, Android will copy Apple and I'm all for that. The more the merrier.
They were not DOING THIS, because Google's solution is completely different than Apple and that's why it didn't take off. Maybe it is time you brush up on your Googling skills, I heard Google have course on that...
To be honest, I hope this happens - or whatever it takes to get Apple + Google on board together to beat MCX down. Both solutions (Google Wallet in its current state) offer FAR more user friendly options for payment.
For once, Apple and Google should play on the same team.
Ahh, anecdotes and misinformation are fun to play with aren't they? You can paint any kind of scenario you want with them!
Google doesn't need to copy Apple. Their method of NFC payments is secure, works fine, and will continue to work fine.
