MCX CEO Touts Loyalty Perks of CurrentC, Says There Are 'Consequences' for Breaking Exclusivity Terms

[jmgregory1]

Do you realize that the average person doesn't even know what a qr code is?

Most of us here are tech people or at least a bit in tune . The vast majority, not so much.

You see how the masses think apple created nfc while it's been around for years. People are going to love that qr system. I'm not one of them, but I'd put money in it doing pretty good.

QR codes have ready had their chance with the huge marketing blitz, what, 2 years ago? The average consumer knows what they are and they are not using them, which is why it's a dead system. I'm not saying Apple has the answer, but they are making it really easy to use in a way that no one before them has.

 

[scottwaugh]

The guy is right, there are consequences for not doing what CurrentC says they have to…

As an example those firms that don't do what CurrentC says they get more business/sales as a consequence.

Because Meijer didn't bend to the CurrentC Cabal's commandment to shut off NFC - I specifically made a trip to their business yesterday (out of the way for me) just to make my purchases there and I will continue to do that (actively making a choice towards NFC offering businesses) for those businesses that support NFC. I'd encourage all NFC and non NFC users who want to keep payment choices available, do the same.

Probably not the consequence ol' CurrentC CEO was thinking of, but are the ones that are happening.

 

[OneMike]

QR codes have ready had their chance with the huge marketing blitz, what, 2 years ago? The average consumer knows what they are and they are not using them, which is why it's a dead system. I'm not saying Apple has the answer, but they are making it really easy to use in a way that no one before them has.

Apples system is better, but just wait and see. CurrentC will be big.

 

[benji888]

Let's hope no one falls for their marketing tricks.

1) No one wants payments in the cloud w/bank account directly attached. (They say account information isn't in the phone, but, it is in their cloud, and you do access it when you pay. So, it really doesn't work the same way as Apple Pay.)

2) Rewards can be done without being connected directly to my bank account. The only way their reward system could be convenient is if everywhere I go uses this system and I only play with currentc for everything everywhere. This will not happen. Period. We want rewards programs separate from our bank account.

3) Their system is deceptively worded to seem like it's for the benefit of the consumer, but, it is really directly the opposite, beneficial for the system & the merchants using it.

4) NFC is more convenient, and, more secure. Apple Pay is done in such a way that when you make a payment, even IF the POS system is hacked and someone obtains the number used for that payment, they cannot do anything with that number, it is not directly connected to your account. They need your phone and touch ID to use that number, but, even then, I'm not sure, but, I think it's a one-time use number, so they can't do anything with it at all.

 

[jmgregory1]

Apples system is better, but just wait and see. CurrentC will be big.

I would beg to differ. CurrentC will most likely fold and the retailers who have partnered with this sham of an idea will walk away losing their investment and learning the hard way that dealing with old tech can be painful. They're going to look bad to consumers, their customers, and other negative PR alone will force them to run away from this bad idea (it was bad two years ago and has not gotten better with age). I hope the guys who pitched this idea to retailers put their earnings into bank accounts in the Caribbean, because otherwise it's going to evaporate really fast when retailers start jumping ship and they have nothing but a bad old idea to hang their hats on.

 

[aduzik]

The tokenization systems used by Apple Pay (run by Mastercard, Visa or another processor) are also running in the cloud ...

VisaNet is not a cloud service. MasterCard's and Amex's networks (whatever they call theirs) are not cloud services, at least not according to any definition of "cloud" I'm aware of. Apple may facilitate the enrollment process, but it's the payment processor that generates the token. And the iPhone has purpose-built tamper-resistant hardware to guard the token.

And beyond that, Visa and the banks are on the hook for fraud if they do get hacked, so they are highly motivated to secure their systems.

 

[Renzatic]

I would beg to differ. CurrentC will most likely fold and the retailers who have partnered with this sham of an idea will walk away losing their investment and learning the hard way that dealing with old tech can be painful.

I think Apple Pay and Google Wallet are better setups than CurrentC, but I seriously doubt we'll see a mass exodus from these stores due to the payment standards they use. People shop where they like to shop, and won't suddenly stop shopping at their favorite stores simply because they're using CurrentC over Apple Pay. I'd say for the next couple of years at least, it won't even be an issue, since none of these smartphone based payment systems have embedded themselves in the public consciousness as of yet.

 

[c3r]

FYI, Starbucks does not use QR Codes. Not sure why, but they use PDF417, an older barcode format. Works the same way, but QR Codes should be easier to scan and allow more data to be encoded. NFC still seems better.

 

[Rigby]

1) No one wants payments in the cloud w/bank account directly attached.

Yep. That's why no one uses Paypal.

2) Rewards can be done without being connected directly to my bank account.

As it stands, the only way to do loyalty programs with Apple Pay is to use NFC *and* scan a QR code from Passbook. Doesn't sound terribly convenient to me. Luckily I have very little interest in loyalty programs, but many seem to like them.

 

[StyxMaker]

I don't know if anyone else here has the same experience, my friends say they do, but I do use the Starbucks app to pay for my coffee when I go there, and the little reader they have sitting on the counter facing the customers scans the barcode on the phone screen. It NEVER immediately recognizes the code, it always takes a few seconds of me passing the phone over it at different angles. It is nowhere near as flawless as Apple Pay.



Same thing with the Best Buy app. I have my rewards info in there and when I have a certificate I want to use, they always try and scan the screen and sometimes it works, but takes them several tries, and sometimes it doesn't work at all and they have to enter it manually.

I have no experience with the Best Buy app, but I use the Starbucks app daily and the reader has always read the code almost instantly.

 

[groovyd]

isn't apple rumored to be fast tracking a loyalty option for apple pay by the end of the year?

 

[joneill55]

This will be an "epic" fail within 1 year.

 

[mj1108]

Just give up, MCX. This is going to bomb so hard and we will all be laughing when it does.

I give this less than a year and at that point we will see merchants scrambling to put NFC terminals in (if they don't have them already).

 

[samcraig]

I would beg to differ. CurrentC will most likely fold and the retailers who have partnered with this sham of an idea will walk away losing their investment and learning the hard way that dealing with old tech can be painful. They're going to look bad to consumers, their customers, and other negative PR alone will force them to run away from this bad idea (it was bad two years ago and has not gotten better with age). I hope the guys who pitched this idea to retailers put their earnings into bank accounts in the Caribbean, because otherwise it's going to evaporate really fast when retailers start jumping ship and they have nothing but a bad old idea to hang their hats on.

The reality is - if that happens, yes, they will have lost their investments. However except for those indignant on only shopping using their phones, everyone else will continue to shop at these stores, and when/if they adopt NFC, I suspect many who are "boycotting" will eventually return to their normal shopping patterns and choose convenience over their battle wounds.

Human nature. People are fickle.

 

[BrewsterMccloud]

Walgreen's

Walgreen's has embraced Apple Pay. They also have a very active "rewards" system that is tied to scanning a bar code on a card (I keep mine on my keychain) or to a login on their website. So you can have Apple Pay and also still have a rewards system that people use.

 

[ZCT]

One of my issues is that America has been left behind by other countries who over ten years ago adopted chip and PIN system of credit cards.

With some 84 countries doing this now, I felt like some backwater refugee last time I went to England in 2007, and presented my premium Visa Signature card only to be told that it was not accepted.

Fast forward seven years later, and only a handful of credit card companies have given us Chip and Signature, which is still way behind other countries and still leads to inconvenience when traveling.

But now Walmart and the companies they suckered in want to make some QR code reading system that won't work abroad, looks lame, and is so pathetic they are having to use stringent rules to lock businesses into it, and for what?

Yes it will be a step beyond the current system, but will be useless to people who travel outside of America. Plus if you have to outlaw the competition just to get ahead, it's likely your product sucks.

 

[DocBoo]

There is a quick fix to all this CurrentC and MCX nonsense. The banks just need to start charging the same interchange and other fees on the ACH system that brings them in line with credit card fees. Then MCX will shrivel up and die.

 

[robvs]

Rewards

Regarding rewards, each payment system has its advantages and disadvantages:

Apple Pay:
- Retailer rewards/loyalty programs do not work with Apple Pay. The retailer must use a separate mechanism to link the purchase with the customer. However, I have it on good authority that Apple is working on ways to link an Apple Pay transaction to a retailer's loyalty program. My guess is that they'll launch the capability some time in late 2015.
- Credit card rewards continue to work assuming that you've linked your reward credit card to Apple Pay.

CurrentC:
- Retailer reward/loyalty program capabilities are built into the system. In fact, it provides the retailer an unprecedented level of data mining capabilities.
- Credit card rewards don't come into play because they aren't part of the payment chain. This means that people who rely on an air-miles credit card to earn free flights will never use CurrentC.

 

[tl01]

I don't like MCX and have written to many retailers about my negative feelings about it...and I have embraced Apple Pay as well as any fan girl possible can.

That said... I can see that people with phones without NFC will see this as a way to start using mobile payments. In terms of apple customers, only the current gen phone customers can use it. Clearly tons of androids can do NFC. My concern is that MCX might gain some traction from those who don't have NFC... Even though MCX is total crap.

 

[jmgregory1]

The reality is - if that happens, yes, they will have lost their investments. However except for those indignant on only shopping using their phones, everyone else will continue to shop at these stores, and when/if they adopt NFC, I suspect many who are "boycotting" will eventually return to their normal shopping patterns and choose convenience over their battle wounds.

Human nature. People are fickle.

I'm not suggesting that people won't shop at stores using CurrentC, but rather no one will use this system for payments. Both Apple Pay and Google wallet will only see limited adoption as it's going to take at least a couple of years before the numbers are meaningful. At least that is how I see things playing out.

 

[tl01]

I forgot to say that this CEO is really starting to sound desperate and a little creepy. That alone would keep me away from using their service. Too bad the majority of the public doesn't read articles like this.

----------

Regarding rewards, each payment system has its advantages and disadvantages:

Apple Pay:
- Retailer rewards/loyalty programs do not work with Apple Pay. The retailer must use a separate mechanism to link the purchase with the customer. However, I have it on good authority that Apple is working on ways to link an Apple Pay transaction to a retailer's loyalty program. My guess is that they'll launch the capability some time in late 2015.
- Credit card rewards continue to work assuming that you've linked your reward credit card to Apple Pay.

CurrentC:
- Retailer reward/loyalty program capabilities are built into the system. In fact, it provides the retailer an unprecedented level of data mining capabilities.
- Credit card rewards don't come into play because they aren't part of the payment chain. This means that people who rely on an air-miles credit card to earn free flights will never use CurrentC.

Lol! I only use my Costco Amex and my airline mileage card to pay for stuff. I don't use my debit card and never carry or use cash.

 

[lederermc]

Easy solution... Apple and Google, pull their app from your app stores and/or prevent it from launching. How successful can CurrentC be w/o an app? You block us we block you.

OR better yet; Declare the transaction an in-App purchase and take the usual 30% cut.

 

[devsfan1830]

I don't know if anyone else here has the same experience, my friends say they do, but I do use the Starbucks app to pay for my coffee when I go there, and the little reader they have sitting on the counter facing the customers scans the barcode on the phone screen. It NEVER immediately recognizes the code, it always takes a few seconds of me passing the phone over it at different angles. It is nowhere near as flawless as Apple Pay.

Same thing with the Best Buy app. I have my rewards info in there and when I have a certificate I want to use, they always try and scan the screen and sometimes it works, but takes them several tries, and sometimes it doesn't work at all and they have to enter it manually.

Same here. First time i attempted Apple Pay at Walgreens I presented my screen for my Walgreens card. Guy told me for that week his scanner was having issues with scanning phone screens and mine did not work either. I've also had minor delays when I attend WizardWorld cons that provide passbook QR tickets. It takes them a while for their scanners, which are actually phones too, to pick up the tiny code. So there's room for improvement there but it may just be an optics issue with IR and glass. Then tack on the people that use screen guards that may exacerbate the issue. Might be improved by Apple down the road by making the codes bigger to scan. And if you think about it, the whole issue CurrenC supposedly solves by people wanting to use loyalty cards would be pretty much solved if they just let us load them into passbook. I presume google wallet could add similar functionality. CurrenC is saying they solve a problem that Apple and Google have already solved or attempted to solve. We've been given the tech, yet retails somehow want to make it harder for us to give them money. They are nuts if they think people are going to use this.

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OR better yet; Declare the transaction an in-App purchase and take the usual 30% cut.

I assume you're joking but I doubt they would/could do that. They've already established that transaction through apps are only subject to that fee if they are digital services. Physical goods are left alone. Thats why you cant buy a digital book or comic in Kindle or Comixology, but you can shop on Amazon and eBay and the like with no issue.

----------

Regarding rewards, each payment system has its advantages and disadvantages:

Apple Pay:
- Retailer rewards/loyalty programs do not work with Apple Pay. The retailer must use a separate mechanism to link the purchase with the customer. However, I have it on good authority that Apple is working on ways to link an Apple Pay transaction to a retailer's loyalty program. My guess is that they'll launch the capability some time in late 2015.
- Credit card rewards continue to work assuming that you've linked your reward credit card to Apple Pay.

CurrentC:
- Retailer reward/loyalty program capabilities are built into the system. In fact, it provides the retailer an unprecedented level of data mining capabilities.
- Credit card rewards don't come into play because they aren't part of the payment chain. This means that people who rely on an air-miles credit card to earn free flights will never use CurrentC.

Except that in one of their statements they said credit cards would be able to be linked to their service as well which makes the point of this whole thing even more certain to be for nothing but data mining. The very thing I hope people do NOT want anymore in light of recent and probably soon to come breaches. I have zero faith in their ability to keep data safe. Unfortunately like anyone else I still need to use my cards to buy stuff NFC or not so I keep a firm watch on my finances and have gone the extra length to put secure, unique passwords on all of my accounts. If they think I'm going to download this app and just throw them all of my info they can kiss my ***.

 

[c1phr]

Customers will not need to hold their phones "at a certain angle with certain light," and it's "designed to read a QR code pretty quickly." Davidson pointed towards Starbucks as a QR code success story, and said Starbucks is an "inspiration."

After working for Starbucks for a few years, those QR codes are not a success story whatsoever, and they absolutely need to be at a certain angle with certain light.

 

[Rigby]

After working for Starbucks for a few years, those QR codes are not a success story whatsoever

Your CEO seems to think differently. According to him, Starbucks basically owns the mobile payment market, and processed payments worth $1.3 billion in 2013. Far more successful than NFC so far.

http://www.nfcworld.com/2014/11/03/332401/starbucks-claims-90-share-us-mobile-payments-market/

and they absolutely need to be at a certain angle with certain light.

I must be doing something wrong. When I scan my Starbucks code or mobile boarding passes at airports, it works immediately in 99% of the cases. Just as fast as Apple Pay. No "certain angle" required. Just put the phone right in front of the scanner so they almost touch.