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The cost of saying no way to Apple Pay

Monday, October 27, 2014 - 02:05

Apple Pay resistance from retailers who are developing their own system could backfire. Bobbi Rebell reports.

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Some retailers are saying no way to Apple Pay. Looking to control data and cut costs, giant retailer Wal-Mart and drugstores CVS and Rite Aid have blocked the consumer friendly mobile payment system. Apple Pay allows consumers to buy things just by holding their iPhone 6 and 6 plus devices up to readers installed by store merchants. Some of these retailers are opting out and plan to offer a rival system, CurrentC, being developed by Merchants Customer Exchange - or MCX - which is led by Wal-Mart. Patrick Moorhead of Moor Insights and Strategy: SOUNDBITE: PATRICK MOORHEAD, PRESIDENT, MOOR INSIGHTS AND STRATEGY (ENGLISH) SAYING: "It appears that MCX is trying to do is cut out the credit card companies and whether it's one, two, three percent they want to eliminate those fees. The second is about data sharing. What they want to do is share all the data from all of the participating companies, to be able to do data mining to give discounts to customers. So, it's really all about the money, as opposed to the consumer, which I think is pretty sad, because again the reason that these prior iterations of electronic payments systems have failed is because it's just too hard to use, and CurrentC isn't addressing that at all." Oh - and CurrentC also not even coming out until next year. The problem is a lot of the retailers apparently signed contracts and are locked in to CurrentC for a few years. But just like with the music business - which eventually came together with the consumer friendly iTunes - Moorhead believes Apple Pay will eventually dominate. SOUNDBITE: PATRICK MOORHEAD, PRESIDENT, MOOR INSIGHTS AND STRATEGY (ENGLISH) SAYING: "I actually think the consumer is going to win here and once they get more familiar with it and aware of it, which I think Apple does a great job at they will be putting pressure on retailers to accept payments like Apple Pay. " Apple continues to add new retailers to its list, currently at 34, with 6 more coming soon.

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The cost of saying no way to Apple Pay

Monday, October 27, 2014 - 02:05