CVS Stores Reportedly Disabling NFC to Shut Down Apple Pay and Google Wallet

I don't understand this need for retailers in the states to provide their own bespoke system? Surely it's more cost effective for them to just adopt secure, third party infrastructures like Google Wallet, Apple Pay?
 
doelcm82 said:
Silver Lining: In Texas at least, nearly every CVS has a Walgreens nearby. Often at the same intersection.
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That's how it is here in South Carolina. CVS has been around for a while (a lot of the RiteAids and Eckerds around here were converted YEARS ago), and Walgreens is basically the new kid on the block here, and when they were building them I thought it was hilarious how they were putting them so close to CVS stores.

The Walgreens near my neighborhood is literally a 1-2 minute drive down the street from the CVS. Walgreens is at the top of the street near the highway, CVS is at the bottom right before you get into my neighborhood. Granted, CVS is closer to my house, but now that they're not accepting Apple Pay, I will gladly take that extra 1-2 minute drive.
 
VictoryHighway said:
It looks like the retail industry is fighting back at Apple for usurping their "Merchant Customer Exchange" CurrentC project.
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The thing is that Apple nor Google will adopt MCE.
Apple will certainly never adopt it (NFC not open to devs) while you my get a 3rd party app on Android.

Extremely foolish as developing their own technology is reliant on adoption form hardware manufactures and the biggest one on the playground isn't going to play ball.
 
Whoa. The fact they're doing this means there's no legal agreement between Apple and these merchants. Ye, is this in any way a conflict of interest? Shutting down services promised in order to favor another company doesn't seem right. Haven't read the thread yet, i'm curious as to the legalities.

Paddle1 said:
This is bad for Apple, they will have to prove themselves or Apple Pay will be thwarted deliberately. They shouldn't need to disable payment to compete. These are unfair tactics.
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This is my thought. If retailers aren't [legally] beholden to NFC systems, and they follow the EMV model required by October 2015, Apple Pay and Google Wallet, etc can be hindered if merchants follow this trend.
 
I like CVS, I won't completely stop buying from them but my business with them will certainly plummet. I'm not familiar currenC or MXC but I doubt many will opt to use them on their smartphone when built-in payments systems are already in place like Google Wallet or ApplePay.
 
PhoneI said:
which nobody ever used, and has zero shot of ever being widely used.
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No one is using it because it isn't out yet for public use. :rolleyes:

cloudnessisx said:
From Merchant Customer Exchange' wikipedia

"The company is led by merchants such as 7-Eleven, Inc.; Alon Brands; Best Buy Co., Inc.; CVS/pharmacy; Darden Restaurants; HMSHost; Hy-Vee, Inc.; Lowe's; Michaels Stores, Inc.; Publix Super Markets, Inc.; Sears Holdings; Shell Oil Products US; Sunoco, Inc.; Target Corp. and Wal-Mart Stores, Inc."

Expect more companies to retract NFC use with Apple Pay and Google Wallet in next days.

"The company intends to make their application available on all major smartphone platforms."

We'll see who's laughing when their solutions get turned down in an equal move from iOS and Android. Good luck gaining marketshare with your precious payment solution for Windows Phone, Blackberry and Palm!
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Except Merchant Customers Exchange is an issuer (hardware) and processor (transactions), so retailers actually need them, they don't need Apple Pay. Apple Pay just collects the cards you already have. They don't issue their own hardware to process payments like MCE.
 
Wwsd?

What Would Steve Do?
Steve would have bullied those b@terds into begging him to get in the door.
We would also have Apple TV by now.
Dear Tim....
Wield your Billion dollar power....make those minions do your bidding.
 
SCOLANATOR said:
I actually think something like Apple Pay would have been better hitting the UK first, it's actually pretty quick at adopting this sort of thing and everyone here has an iPhone (so many would upgrade to a 6). I'd say 60% of the places I shop at support NFC cards and I know most would love to pay using their iPhone.

Lets hope this isn't like iTunes Radio which hit the US and never crossed the pond. The sooner Apple Pay arrives in the UK the sooner I'll be inclined to upgrade.
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I think they rolled it out in the US first because they sensed an opportunity to make inroads before the technology becomes ubiquitous. Contactless payment is nothing new in Europe, but it's a novelty here. Apple has more than 40% of the mobile phone market in the US, and so they were able to get a lot of banks on board. The card companies will begin mandating retailers to switch to chip readers in October of next year, and many of them will also have NFC, so it gives Apple a year to work out the kinks and differentiate itself before the technology becomes commonplace.
 
Hopefully they'll launch their special weird QR based checking account app soon so it can fail and we can all move on to the future.
 
haydn! said:
I don't understand this need for retailers in the states to provide their own bespoke system? Surely it's more cost effective for them to just adopt secure, third party infrastructures like Google Wallet, Apple Pay?
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It's not their (CVS) own system, but their (Merchant Exchange network) system, as in the system CVS and a long list of other retailers use to process payments. CVS isn't going to release its own CVS payment processing system, but the CurrenC system once it is finished.

----------
pondhopper said:
What Would Steve Do?
Steve would have bullied those b@terds into begging him to get in the door.
We would also have Apple TV by now.
Dear Tim....
Wield your Billion dollar power....make those minions do your bidding.
Click to expand...

Steve's dead. Get over it.
 
DoctorTech said:
I agree with most of the previous post about this being a dumb move by CVS. I travel a lot in my work and nearly every time I see a CVS or a Walgreens, they are literally across the street from each other. I normally go to CVS in my hometown because their parking lot is a little easier to get in and out of but supporting Apple Pay is enough to tip the scales for me, I will be going to Walgreens from now on.

I could even understand if CVS's position if their payment system was up and running today but to essentially tell customers "come back in 3-9 months and try our NFC system" is just plain dumb. Due to all the security breaches at major retailers over the past year or so, I really think the market is going to move QUICKLY to tokenized payments where credit card info is not given to retailers. Apple is in a great position to be the first to put together a viable payment ecosystem with enough banks, credit cards and retailers to become the defacto standard. I think CVS has placed a big bet on the wrong horse.
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The best part about them being in close proximity to each other? Going to CVS first, failing to use Apple Pay, let them watch you walk across the street into Walgreens and walk back with your purchase and get into your car in the CVS parking lot. That should speak volumes.
 
CalWizrd said:
Where do all of the horrendously misinformed and/or unintelligent people come from?
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Agree that it is misinformed. However it is not unthinkable that banks will transfer the cost of Apple Pay to retailers through the fee that retailers pay for the electronic payment system service.

Not saying that any of these misinformed people ever thought of this. They just assume the retailer directly needs to pay Apple, which is wrong of course.
 
This is really an indicator of just how successful Apple Pay already is. These stores accepted other NFC payments without complaint--because so few people used them a that they didn't perceive a threat to their long term plans.

Now in less than a week, Apple Pay must have been used so often that it scared them into a defensive posture. If it was just a few customers they wouldn't have cared.

It's just going to be funny when Apple rejects their app. Just like they pulled Bose products from their stores--Apple isn't required to distribute any product they don't want to.
 
VictoryHighway said:
It looks like the retail industry is fighting back at Apple for usurping their "Merchant Customer Exchange" CurrentC project.
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This isn't just about Apple Pay.

NFC is a done deal - it's a worldwide standard and the reason Apple Pay works in places that don't explicitly support it. This doesn't just impact Apple Pay (and Google Wallet) users, but everyone who wants to use Tap-and-Go, PayPass and other implementations, as well as the (big) companies behind them, pushing this functionality. Eventually, Visa, Mastercard, etc will crank up the fees on non-NFC transactions, and CVS will either comply, try to pass on the increased fees to customers, or have to decline all non-Visa/MC transactions entirely, further alienating customers.

If CVS genuinely thinks they can undermine a global payment standard by creating system that only works in their stores ("CVS Bucks", or CV$), and blocking the one that works worldwide, then they're bat-crap insane.
 
tbayrgs said:
And here we are two years later with no indication they are any closer to implementing even the first phase of this program, much less an actual payment solution. What cracks me up is the final line of the previous quote, that the application will be available through virtually any smartphone. So these retailers have just cut off access to the native payment solutions of the two largest mobile platforms in existance and they think they'll be able to implement their own solution on these same smartphones. I wouldn't hold my breath on that MCX. Apple doesn't always play nice with the competition (i.e. Google Wallet can't be used to make wireless payment on the iPhone, various apps don't get approved for various unclear reasons) and you've just pissed off not only the largest player in mobile phones, but the largest company in the world--a company that provides those very smartphones you're going to need for your application. Good move.

I personally don't visit most of these merchants anyway because frankly, most are crap but moves like this will ensure I don't visit any of them again any time soon.
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CurrentC is actively in beta testing for payments at Target. Of course, Target already has a form of payment set-up to move to it - their Debit RedCard.

But, it is at least far enough in the process to be being used.


********

I wonder what MC/Visa/Amex will have to say about this in regards to any merchant agreements??
 
First cigarettes, now this. CVS just doesn't want people shopping there.

I still say they need to stop selling beer/liquor too, if they are so concerned about peoples' "health".
 
cmaier said:
Simple: Apple will just demand 30% of every currentC transaction initiated from an iPhone app (as is their right) and that will be the end of this nonsense.
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Apple has been able to collect 30% for in-app purchases because the money goes through their systems. Apple could refuse to approve an MCX app, but I think MCX actually works by sending a text with a QR code to scan, bypassing Apple. Apple could disable all text messaging but that wouldn't go over well.

MCX's system will most likely fail anyway, so Apple's best bet is to take the higher ground.
 
CalWizrd said:
Where do all of the horrendously misinformed and/or unintelligent people come from?
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The Microsoft World that is crumbling all around them, I bet these people haven't even made the transition to Google! It is like they don't even know alternatives exist! It is like they all have been brainwashed to hate Apple!
 
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