CVS and Rite Aid Officially Disable Apple Pay Support At Stores Nationwide

[Redenkeew]

Not true at all. Normal consumers will sign up for anything if there is something in it for them. MCX stores can offer customers extra discounts and benefits for using there system. Just take a look at out "loyalty cards" dominate the retail landscape. MCX is just a 2014 version of that + payment features. It won't be so hard to get consumers to sign up if the marketing is "carrot and stick."

NFC has to regroup and counter this attack with its own vigorous promotions to encourage customers to use its system. Word of mouth isn't enough when people's pocketbooks are involved. Only the geekiest are going to pay a premium to use NFC.

They will sign up for anything that only require them to fill out their names, phone numbers, emails and home address at most. CurrentC requires you to download an app, fill out your info, then your bank account and routing number (who remember these numbers? And I doubt an average customer know how to find them) etc... I don't think a little "extra discounts" would be that attractive for an "average customer" to go through all the trouble. I mean paying is a habit. An average person don't change their entire habit for a small change in benefit. And then there are doubts. Like you said, people's pocketbooks are involved. That would be too much trouble for one to change their paying habit, when, I'm sure the current system of physical credit cards, cash, a keyring full of miniature loyalty cards and coupons are still working for them, the average consumer.

If it's just a loyalty cards app, I'm sure they would sign up. But with that troublesome payment sign up process?? Uhmm

 

[k1121j]

well if one pieces rumors together google is working on a new "google wallet" as well as this news hmmm i sense an android in the mix

 

[yossi]

Drive away your wealthier customers who can afford an iPhone. Makes perfect sense.

Based on those holding iphones while using food stamps card, I would say you use the word wealthier a little loosely.

 

[Dargoth]

From our point of view, that's not a problem. That's a benefit.

True. I think the heart of the issue is that these businesses are run by businessmen who have been trained after years of experience to be wary of any new piece of technology. They don't know how much better NFC is than any other system, and they need it explained to them like the technology-illiterate people they are. Apple I'm sure to this day remembers how little businessmen understand the tech world... They will come around once someone they trust explains the advantages to them, it just hasn't happened yet.

 

[Redenkeew]

Based on those holding iphones while using food stamps card, I would say you use the word wealthier a little loosely.

I'd love to meet these people.

 

[Redbeard25]

I seriously doubt that. Mind you I think you will be right long term: CurrentC is guaranteed to tank. But, those stores have signed contracts with MCX. They are contractually obliged to block Apple Pay. Until either MCX is no longer a going concern, or the find a way to wriggle out of their contract they are stuck. Neither will happen overnight. Might take years.

This is exactly right. And, for once in the history of Apple rumors, this time, it is all about the money.

Do you want CVS and Rite-Aid to support Apple Pay? Just take your business to Walgreens. If the amount of defections exceeds the price of their buyout in the contact with MCX, they will jump back in a heartbeat.

 

[Elbon]

All that will do is annoy the 19 year old making $10/hour working the register. Douchey move.

No sense of humor, huh? I thought it was funny.

 

[k1121j]

"CurrentC will provide a more secure payment experience than traditional methods by storing users’ sensitive financial information in its cloud vault"

oh i can't wait for this one to be cracked real secure now everyones information is in one place.... LOL

 

[wikiverse]

This is unbelievable! I can't believe they would do this. CVS and rite aid are just trying to keep NFC payments for their own proprietary system. Competition etc!

Apple are just promoting competition in the sector and allowing people the convenience of using NFC in their phone for a secure payment system. Apple knows consumers want choice! That's why they opened up their NFC capabilities to google wallet right from the initial release of the iPhone 6!

Oh, wait.

 

[SactoGuy18]

In the end, both Rite-Aid and CVS will be forced to turn Apple Pay support back on anyway.

The reason is simple: CurrentC may never make it to operational status. The steep requirements just to get it operational in terms of identity information is bad enough; the possibility that banks and credit unions may NOT allow savings and checking accounts to be linked to CurrentC will be the final blow.

 

[zapnyc]

Most of you posting here fail to understand how this form of payment will allow hackers to gain access to your personal info. Beside what was the customers using before this was invented? They can always use cash or credit cards to pay. Organize hackers can hack anything. Do not fool yourself and think this new untested method of payment is safe.

You definitely don't understand what you're talking about in this case. This isn't some equivalent to the iCloud issue, etc. We're talking massive encryption, etc.. Regardless, it's unquestionably more secure than the little pieces of plastic we carry around in our wallets....which is why ApplePay was designed in the first place.

 

[jjbuckwild]

Had an epiphany...

Just realized............., AFTER reading 2,000+ posts on the CVS/Rite-Aid discussion yesterday..., that "CurrentC" is a play on the word "Currency" ........ doesn't make me like it any more, but kudos to the marketing group who came up w/ that.

Also, didn't notice that one of the groups participating in MCX was Walmart... (NOT a fan...)... But, they're HUGE in 'Merica, and so many the upcoming CurrentC option will be a formidable opponent to Apple Pay after all?? Had it been just some 'small' retailers like CVS and Rite-Aid companies, maybe not.

Thoughts?

 

[philipk]

The sheer # of children with their underpants on fire here at MR because of this is astounding.

1) This is two pay formats competing with each other. It's business. Nothing more or less. Their is no "anti-trust" because none of the companies hold anything close to a monopoly. You all that think there is some sort of "antitrust" do not understand the difference between competing vigourously in the marketplace and grossly interfering with the marketplace. (Sports analogy: "American Football" player jumping up in front of opponent to tip the ball vs. same player grabbing opponents body so he can't catch the ball; i.e., player interference).

2) NFC is not a human right or even a consumer right. Companies choose whether they want to use it or not. Fact: companies do not even have to accept credit cards, check, or in the U.S., U.S. currency. They can operate totally on bartering if they wish -- not a great business model, but not illegal either.

3) In the U.S., up until Apple Pay, NFC was almost unknown to consumers. I'd bank that many consumers are not even aware Apple Pay uses NFC. This is not like something was taken away from consumers. Shoppers habits are more complex -- what side of the road is the store on, best non-sale prices, cleanest store, helpful staff, etc. It's not just one factor like do they have NFC terminals.

4) Normal people do not shop somewhere because a sub-method of payment isn't accepted. They are not going to not shop at MCX stores because NFC is turned off because they still have the swipe terminals. Similarly, people are unlikely to shop at NFC stores specifically because they do have it.

5) What will get merchants attention is if NFC payments offer an advantage to them. Apple Pay, supposedly, offers excellent security. MCX, who knows, but it's their "baby," so it better. Cost of maintaining NFC vs MCX is another factor. Most important is consumer adoption; no customers, no point. Both NFC and MCX require consumers to use an app to store their information in order to function. That's the biggest barrier to entry of all. Sponsoring companies are going to have to promote the heck of their respective system. May the best one win (NFC).

It's going to take a year or two for all this to shake out. MCX has a slight advantage it's consumer end doesn't require the newest tech.

You are right in all 5 points except for what you didn't say.

MCX slight edge completely disappears when you factor in the need to link your checking account to the system and the refusal to allow MC, Visa, Discover or AMEX. Yes, MCX could add them before launch. However, that would completely negate the whole reason MCX exists.

If MC, Visa, Discover, and AMEX wants to play hardball and win, they should immediately issue NFC credit cards to the majority of their current customers. It would be game, set, match!

 

[kevisawesome]

What a stupid decision on their part! Nobody is going to want to use their system when it launches because Apple Pay will already have become a very used service by then. Makes me wonder what the business leaders in that company is smoking!

 

[jjbuckwild]

Strange bedfellows...

Also, I've always been amused at the way giant corporations work together (even when they're competing) like Apple vs. Samsung, Apple vs. Microsoft, etc...

It'll be REALLY interesting if Apple w/ Apple Pay and Google w/ Google Wallet join forces against MCX's "CurrentC"-- and NOT allow any sort of related apps or functionality on their smartphones...

 

[paulsdenton]

Since you're not sure ill tell you how. First they post that rite aid is shutting down apple pay then they post that cvs is, and now they have a story combining the two. why make a whole other story when the first two were just fine. I hope that maybe you'll understand now, but if not it won't surprise me. Have a great day

What difference does it make?

 

[KentuckyHouse]

Since you're not sure ill tell you how. First they post that rite aid is shutting down apple pay then they post that cvs is, and now they have a story combining the two. why make a whole other story when the first two were just fine. I hope that maybe you'll understand now, but if not it won't surprise me. Have a great day

Who's beating a dead horse now?

 

[BruiserB]

I expect that very shortly these retailers will reverse this and again accept ApplePay. MCX will release a statement saying that RiteAid and CVS "misinterpreted" CurrentC's term and conditions and that they never were required to reject ApplePay. Finally they will state that they are looking forward to releasing their superior system early next year and look forward to the competition.

At least that would be the most graceful way out of this PR mess.

 

[malexandria]

I Bet

Should examine whether this move complies with antitrust laws, banking laws, and the credit card merchant agreements.

Also: Rite Aid sucks.

Somehow, I bet you support Apple's recent decisions to pull Bose and Fitbit devices from their stores because they compete with Apple's new products....

 

[reclusive46]

You fail to grasp why this is big. I pay in cash everywhere I go since my debit cards were compromised 2 times over by merchants being idiots. I don't like to carry around that much cash so when this whole thing was announced I was really excited to finally have tokenized payments where my info can not be used when the vendor is breached (which they all will be). Look beyond brand hatred and/or loyalty and realize they shut off not only ApplePay, but GoogleWallet, All Chip and PIN cards (so most of EU visitors) and everyone else who has adopted the NFC standard just so they and the banking conglomerate MCX behind them can cheap out on the credit card fees they have had for 50 some odd years and also make a mint trafficking in your data, which is almost more valuable than your business. I for one will never shop at another store who has done this. While I am one person, we are a growing army of dissatisfied customers. I bet Walgreens is going to make bank over this and they should. They have had NFC for some time and embrace the new payment tech. They get my business from here on out.

Sorry just to clarify with the chip and pin cards. While NFC payments are based on EMV (the same standard as chip and PIN) and while many EU and Aussie/NZ EMV cards are contactless (For low value, no cardholder verification transactions) as well, they all still have contact chips (ones which is inserted and used for chip and pin/signature transactions). So by turning off NFC they haven't stopped these cards being used. These cards also have magnetic stripes as well.

 

[kemal]

Where I live, CVS built a new store across the street from almost every Walgreen's. CVS will not see my business. CVS has made it very easy to find a Walgreen's.

 

[KentuckyHouse]

Just realized............., AFTER reading 2,000+ posts on the CVS/Rite-Aid discussion yesterday..., that "CurrentC" is a play on the word "Currency" ........ doesn't make me like it any more, but kudos to the marketing group who came up w/ that.

Also, didn't notice that one of the groups participating in MCX was Walmart... (NOT a fan...)... But, they're HUGE in 'Merica, and so many the upcoming CurrentC option will be a formidable opponent to Apple Pay after all?? Had it been just some 'small' retailers like CVS and Rite-Aid companies, maybe not.

Thoughts?

My thought is that CurrentC is going to be a huge flop. People in the US already don't use NFC payment (broadly), so what makes these companies think having their own method will make it any more popular?

The funny thing about this is, by disabling their NFC readers, they've managed to do something I never thought I'd see...they've pissed off and brought together both Apple and Android users. There's a cross post in both r/Apple and r/Android on Reddit about this and Apple and Android fans are now seemingly combining forces. As the saying goes "The enemy of my enemy is my friend".

BTW, I'm no fan of Wal-Mart either. We haven't been in one in years since the revelations about how they treat their employees. Luckily for us, a Costco opened in our town last year, so we choose to give our business to a company that actually cares about their employees.

 

[senseless]

Indeed they can't. Problem is, neither can the pharmacies. The real issue is that, with ApplePay, they can no longer track our buying habits, or at the very least have it tied to any individual. They still get (imo) more than enough data solely from knowing what people are buying, but that's just my ¢2. In this data-hungry world, no amount of data is ever enough.

If you use your bonus cards, that tracks you also. I'm not terribly concerned about that.

 

[samcraig]

That other thread will never hit 10,000 posts now

 

[mudman2]

So you don't want to accept money from paying customers?
Image

They are all about trying to monetize your personal data

I already wrote to CVS telling them I am moving my families prescriptions to the Walgreens 2 blocks away and I don't have a 6 yet

Everyone want to get to you and analyze you. Apple pay just pays the $ which is obviously not enough

F em