October 29, 2014
News about Apple Pay is almost becoming like peeling an onion. One by one, interesting pieces of information are coming our way and we wanna make sure that you get to see every layer of it.
Here are some recent news items that have come up around Apple Pay:
Load Wells Fargo card into Apple Pay, get $20 credit
Wells Fargo has not only embraced Apple Pay but is also trying to make its card the most preferred one in the Passbook app. Earlier this week Wells Fargo began a promotion campaign to scale up the use of its payment cards. As part of the campaign, it is paying $20 to Wells Fargo cardholders who load their cards into Apple Pay and make their first transaction. Tim Cook’s interview at the WSJ conference already revealed that Apple Pay had reached 1 million card activations within its first 72 hours.
Walmart’s response over dropping Apple Pay and NFC
Walmart is currently backing the CurrentC payment system developed by Merchant Customer Exchange (MCX). CurrentC directly links to checking account of users and uses QR code scans to enable transactions. Walmart believes that CurrentC is a better solution and this is what they had to say:
There are certainly a lot of compelling technologies being developed, which is great for the mobile-commerce industry as a whole. Ultimately, what matters is that consumers have a payment option that is widely accepted, secure, and developed with their best interests in mind. MCX member merchants already collectively serve a majority of Americans every day. MCX's members believe merchants are in the best position to provide a mobile solution because of their deep insights into their customers' shopping and buying experiences.
This is surprising because Apple Pay uses NFC, Touch ID authentication and tokenization in order to enable a single transaction. It’s hard to believe whether a system more secure than this does exist. Judging by Walmart’s response, it is strange to see that they are not giving customer the choice which is ideal. We can only say that Walmart and other MCX retailers are seeing Apple Pay as a threat to CurrentC.
Retailers disabling NFC & Apple Pay is not by design but by default
The New York Times broke the news that MCX partners are contractually required to accept CurrentC exclusively. It has also come to light that if they opt for other payment systems like Apple Pay, then they would face penalties in form of fines. It seems that the legal binding of the contract is forcing retailers to switch off their NFC terminals. The recent blockade against Apple Pay by retailers like CVS and Rite Aid is being witnessed as customer abuse. But these recent revelations about the contract show that the retailers are not the only ones to be blamed.
You should read about our two recent articles on Apple Pay: