Apple Pay launched last week with widespread support at over 220,000 stores in the United States, although Walmart alongside CVS and Rite Aid are among some of the high-profile retailers that have not embraced the new mobile payments service. Now, Walmart has provided official comment as to why it doesn’t accept Apple Pay at its stores.
Walmart told Business Insider in an emailed statement that it is focusing its efforts on developing a payment option that is widely accepted, secure and developed in the best interests of customers in mind — which sounds a whole lot like Apple Pay.
Instead, the largest retailer in the United States is maintaining its allegiance to Merchant Customer Exchange (MCX)’s QR code-based payments solution called CurrentC. MCX is a consortium of U.S. retail companies, which also includes Best Buy, Target, Sears and Publix, that teamed together to work on a merchant-owned mobile payment system.
“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.”
CVS and Rite Aid are two other retailers that recently blocked NFC-based payments including Apple Pay because of their contractual agreements to use CurrentC, which has been in development since 2012. Nevertheless, Apple recently commented that its Apple Pay launch has been overwhelmingly positive and enthusiastic.
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“Ultimately, what matters is that consumers have a payment option that is widely accepted, secure and developed with their best interests in mind.”
You mean like Apple Pay, Walmart?
Look at that lineup, those stores are all sinking together after all.
Am I missing something here? If they disable the readers for Apple Pay, does that not disable it for all contactless cards? Like, Visa PayWave or Mastercard PayPass? I’m totally missing something here; my thought was that they use NFC, just like Apple Pay. So disabling Apple Pay would mean other people couldn’t pay. So what technology does Visa and Mastercard use?
They’ve disabled NFC which does, in effect, disable ALL contactless cards.
You can obviously still use it the old-fashioned way – by swiping the card or using Chip & PIN, just not contactless.
Well, come October 2015, if the retailers don’t accept chip cards, don’t they become responsible for fraud if the accept swipe? What are they going to do, stop taking credit cards all together? If so? I’ll shop 100% online, and zero % through retailers websites.
@iSRS Come October 2015 the retailers won’t be liable for fraud if they have a EMV compliant card reader (uses chip in credit card vs magnetic stripe). NFC is also acceptable way to avoid fraud liability as well. It is the expected that since merchants will be upgrading to a new reader anyway, that they will buy the model that allow contactless payments as well. That is part of why Apple threw its weight behind NFC this year. By next year, merchants might have just bought a chip-only reader and not NFC version.
Except that one of the biggest vendors of chip and pin point of sales systems has said that all of there terminals will be nfc enable.
Verifone has stated that all point of sale chip and pin terminals will be nfc contactless payment enabled, and that they will not build a machine that does not have nfc. They currently are responsible for about 70% of the terminals out there. So it looks like MCX merchants will have to disable nfc in there terminals themselves if they can.
Nope, I don’t think you’re missing anything, because this bone-headed move does in fact disable ALL NFC based tech like Google Wallet, Pay, and all contact-less CC’s and debit cards.
“There are certainly a lot of compelling technologies being developed, which is great for the mobile-commerce industry as a whole.”
But they’d rather just use the one that’s in their best interests to track you, and make it into a monopoly than open up to all the various systems? Yeah, um….no.
“…and developed in the best interests of customers in mind…” Yeah, interests of customers right? What about that percentage they won’t pay to Visa, MasterCard, etc? And what is interesting for customers having their data collected by these companies? This just don’t make sense.
“because of their deep insights into their customers’ shopping and buying experiences”
And there you have it. This is about customer information.
The consumer will ultimately decide what they want to use.
Not if they’re hand is forced from using only MCX’s platform and not a platform of the customer’s choice.
If Wal-Mart and members of MCX were confident that their platform was better they’d give customers the choice of CurrentC, Apple Pay, Google Wallet and all other formats of mobile payment then let them decide which they prefer. If the data is overwhelming in one area that’s the one you go with. Period.
I’m not a fan of how CurrentC works but it doesn’t really matter because the platform isn’t ready anyway. The fact that it’s been on a white board since 2012 and still won’t be ready until next year is likely a sign that it’ll be rushed to market.
Why won’t they use both and get as many customers to shop in their stores????????
yea… see this is where the “ultimately, what matters is that consumers have a payment option that is widely accepted, secure and developed with their best interests in mind.” turns to, “ultimately, what matters is what’s developed with our interests in mind.”
I get that apple pay is not cross platform so having an option that is would be good for consumers, but I’m not sure why both can’t be accepted.
Thing is that what MCX is doing affects Google wallet too not just apple pay. MCX is not willing to accept any contactless payment system other than there own CurrentC
Yeah, I’m sorry, but I’ll need a moment to stop my head from shaking after reading that statement…
Did one of Wal-Mart’s a-typical customers just get drafted to write that complete pile of horseshit??? Because it sure sounds like it’s meant to hit a cord with the dumb hicks that usually shop there, and not those that have even have the average IQ…
This just makes me want to shop there EVEN LESS, congrats!
haha me too. Unfortunately the alternative around here is Target. WA wa.
Hate to tell you, but Target is a part of the same group as Walmart. CVS, Rite Aid, Lowes, Chilis, Best Buy and many more…none of them will accept the NFC transactions such as Apple Pay.
Time to look for another store….I’m certainly not going to any of these.
What the flipping hell is CurrentC i never even heard of it until yesterday. Plus they say that they want to use a more widely payment option, by cutting of NFC they have reduce the payment options.
Yeah, that was the part that I loved. Orwell would have been so proud, we are are bringing you a more widely used option by reducing your options.
What completely floors me is that they are doing this when their competing system isn’t even available and won’t be for some time now.
also why are they doing this now when it’s Apple pay, they never even made a sound when gold wallet came into play, idiots!
Ok, so stores that block apple pay,block google wallet and softcard too?
Yes they block all methods of NFC payments, which Google Wallet and Softcard use, however if you use a Google Wallet Card you can bypass the NFC and just swipe. The Google Wallet card requires you to have a positive Wallet Balance in order to pay, very simple and works much like a debit card (you must enter your pin number with every transaction).
Hypocritical bs. Apple Pay will be the future and those who don’t embrace it will be doomed to failure.
Do they really think we are that stupid? Sounds like they wants to one-up even Google to mine OUR data, then store OUR SSN, DL, and other sensitive data in their cloud – how did that work out for Target, Lowes, Citibank, Nieman Marcus, JP Morgan, etc….
If they have a contractual agreement with Merchant Customer Exchange, I’d say their hands are tied until at least the time their contract runs out.
If CVS or Rite-Aid made this statement, I might by that, but if memory serves, Wal-Mart spear headed this MCX crap, so I believe of all the members, they would be in the most prominent position to continue allowing NFC payment methods… This just screams of “We think consumers are stupid and will do whatever we tell them too”, and the worst part is, the average Wal-Mart shopper IS that stupid 😞
You know Edison, this is the second time that you have made a statement like “the average Wal-Mart shopper” and disparaged them. It is insulting and ignorant.
There are a lot of people in the US who shop at Wal-Mart, not because they like the store, but because they pretty much have to. Wal-Mart moved into small towns across the US decades ago and pretty much killed off all of the local competition. I can think of over a dozen towns around where I live where there is a Wal-Mart and a Dollar General and those are pretty much your options.
And as for shopping online instead of shopping at Wal-Mart in many ways that is even worse, Wal-Mart might be a cancer, but at least it brings some jobs to the area. Buying online is just the next “Wal-Mart” step in eliminating local competition.
I like most of what you say, but this ignorant presumption that anybody who shops at Wal-Mart is an ignorant hick is both insulting and ill-informed.
Notice I said the “average Wal-Mart shopper”, which does’t include everyone. However, that statement is accurate. All one has to do is walk into one of their stores, and your eyes won’t lie to you.
While some normal and decent people shop there (albeit misguided as they’re contributing to the collapse of local mom-and-pop shop economies), the majority are under-educated, below-average IQ individuals (and I’m trying to be nice here) that don’t even do other shoppers the common courtesy of showering and using deodorant before entering the stores!
As for shopping online being worse than shopping at Wal-Mart, I’m sorry, but to my knowledge, Wal-Mart berates, abuses, and severely underpays it’s workforce, so why should I support such a filthy organization? Even Amazon is somewhat better. And sorry, but we have a similar situation here in Canada where Wal-Mart’s have moved into little towns, but guess what, alternates remain, and those with consciousness, and who are not driven by the lowest $ on the sticker, will shop elsewhere.
Lets just fast forward two years from now when CurrentC becomes abandoned and Apple pay is accepted by all these merchants as the standard
So… THIS is what is going to happen… and also what could happen: CurrentC will come out and NOBODY will use it. It will be DOA. The major chains will try to push it by giving shoppers various incentives but ultimately consumers will be standoffish about giving retailers direct access to their checking accounts. It will take until 2016 for the Brick and Mortar stores to reverse direction.
What could happen: The tech companies (Apple and Google)… ok (Sammy also… you know they will have their own copy of Google Wallet at some point) just may attack this using the US Government. Remember when M$ wasn’t letting any browser on Windows other than IE? Remember how they were taken to court and ultimately lost? I’m fuzzy on the fact because it’s been ages ago but you get the point. Could these tech giants attack in the same manner? Also consider that Mastercard, Visa and Discover have a pony in this race as well. Could this be viewed as the retailers creating a monopoly where only their payment solution is accepted?
Wait… another thought and the best one! CurrentC will work through the same smart phones (iPhones and Androids) using an App. How unfair will this consortium feel if their app is banned from ALL app stores? Awwwww…. the game is afoot!
What if they actually did block the app? Would all these defector stores concede to NFC? I think the federal government should mandate that all Credit card vendors have NFC readers.
I really think the Feds will get involved. When CurrentC fails the Gov. will jump in. Just like they mandated that the cell phone makers provide a tracking solution for smart phones they could mandate that consumer purchases are secured with a payment method that is widely accepted by the consumer. Credit card fraud is in the billions every year. The Gov has been trying to fix this and I’m sure they are playing a wait and see game. See if CurrentC works and when it fails they will force every ones hand.
Michael Pearson: Feds aren’t involved unless there’s criminal activity. They can push for secure solutions (as Obama did a week ago with the Executive Order) but that’s about it.
If they were going to fix it then they would have mandated chip+PIN years ago.
Verifone a chip and pin point of sale system manufacturer has stated that they will not build an chip and pin system anymore that does not include nfc. They currently are responsible for about 70% of all point of sales systems in the world.
@Vpndev … Actually the Gov is already headed in that direction ( http://www.whitehouse.gov/blog/2014/10/17/president-s-buysecure-initiative-protecting-americans-credit-card-fraud-and-identity )
Currently half of the worlds credit card fraud happens in the US. European governments have been working with credit card companies and have been the trailblazers for NFC payments. Our country is so far behind the curve. Pres. Obama is trying to push us to catch up. So… At some point they will have something to say about this entire thing. But…hey… I could be wrong. If I could see the future then I would be spending my Lotto winnings instead of chatting on here.
Since the payment processors issue the card readers is it illegal for the stores to disable NFC?
I think that most large merchants own their own POS systems and readers. Payment processors supply some for smaller merchants (and I’m not sure who owns them – it could be that the PP sells them to the smaller merchants).
I don’t see why it would be illegal to disable NFC in a device you own.
Eh, the Walton’s can afford to lose a few bucks.
Now that is a true statement!
I don’t believe the CurrentC app even uses Touch ID, which means if you don’t passcode-lock your iPhone, someone could use it to go on a huge shopping spree, taking the money directly from your checking account without any protections (at least until you ran out of funds). And the only way you can stop it is what? Disabling your CurrentC account? If you lost your phone while on vacation, how quickly can you get to a PC?
CurrentC is so bone-headed, it will take a few high profile losses (e.g. a senior losing their life savings) before everyone realizes how awful it is, and the stores are laughing all the way to the bank.
CurrentC’s double QR scan method is pathetic. It cannot be compared to the ease of use of Apple Pay. Walmart would better admit the mistake and embrace Apple Pay.
The US Government should ban this QR system and say, as part of its legislation on making more secure payments, that all payments must be either chip and pin with a card or NFC based by the end of next year.
Truly a non-issue for me as I won’t shop at WalMart. I’d rather not deal with Sam’s heirs and how they have royally screwed the Small American Business out of business.
WalMart is all about lowest price / lowest quality – with no help for the customer who needs more than to be checked out.
Keep WalMart and Honey-Boo-Boo. I’d rather spend a little more and get help when I need it, or shop from the comfort of my home when I don’t!
Here is what is going to happen:
Some stores will disable NFC / Apple Pay / Google Wallet. Customers in those stores will continue to use cash and/or cards by swiping / Chip and Pin/Signature. Come October 2015, Chip and PIN/signature will be mandated and retailers will see a slow down as Chip and PIN will take longer per transaction for small purchases. Nobody will use CurrentC. Consumers may decide to shop at places that take their security seriously – but this may be the more wealthier / educated side of the market.
Other stores will continue to accept cash, Chip and PIN and NFC. They’ll see throughput at the checkout go up due to small purchases using NFC (either via touching their card or via Apple Pay or Google Wallet) – the consumer will decide which they want to use based on their risk factor.
Eventually, the consortium will decide to re-enable the global standard NFC system and their lines will continue to move again. They will have wasted a lot of money trying this payment method out (essentially another loyalty card) but will learn that security in payment and ease of payment will be essential factors in any payment system.
So lets see what happens.
As an european there is one thing I don’t get about Apple Pay. In what way it is more convenient than wireless card? I mean with a card I just touch NFC terminal with my wallet, while with iPhone I have to take out my phone, put it to the reader and then put my thumb on home button. And many of us use some sort of cover for our screen… Yes it still seems better than CurrentC bullshit. But not by much.
The benefit of Apple Pay over wireless cards isn’t convenience but security.
I am not overly knowledgable about the wireless cards, so if I make an incorrect assumption I am sure that I will be corrected. But here goes.
I am going to assume that a wireless card is basically the same as a magnetic strip card, but it just interfaces through a different medium. That means that when you go to the store and buy something you touch your wallet to the NFC reader and your CCN is passed to the register, which then does god knows what with it before it is sent to the bank for approval. Approval comes back and you happily go about your day until a few weeks or months later when it is revealed that the store that you used your credit card with was hacked and now your CCN is compromised.
With Apple Pay, you pull out your phone and pay with Apple Pay. A random verification number is sent to the register where god knows what is done with it before it is sent to the bank for approval. At the bank that random number is verified against your CCN, which is only at the bank, and an approval is sent. You happily go about your day until a few weeks or months later when it is revealed that the store that you used your Apple Pay with was hacked and you still go happily about your day because nothing about your CCN was compromised since all the hackers got was a onetime use random verification number that meant something only to the bank at that exact moment in time.
This also works to keep the companies from tracking what you are purchasing, unlike your wireless card, and given what else Apple is looking to do with Apple Pay might just end up replacing your loyalty cards for stores that you decide to let track your purchases for discounts and even possibly your mass transit passes.
So, is Apple Pay more convenient than a wireless credit card? No, but I am figuring that it is more secure, and it certainly has more room for flexibility.
From what Apple presented on its keynote I understood this:
1) You take your wireless card and scan it to your iPhone’s Passbook.
2) I suppose that wireless cards NFC emits same informations as are displayed on card itself or are stored on its chip – basically card holders name, card number and valid date.
3) From what apple presented I understood that when you pay with iPhone apple only uses the information it red from card and sends them to terminal. The safety improvement then is that the card details are proceeded only if you thumb-approve transaction.
Now a few observations:
1) In Europe at least your card comes preset with maximum for wireless transaction. it is between 50 and 100 USD. Your card has also maximal per hour and per day for those transactions. So the security and convenience is well balanced right out of the box.
2) Because of the way I assume Apple Pay works it can be used with most, if not all wireless card readers out there. That is a huge advantage and also probably reason why Wall mart shout down its wireless terminals for now.
3) But there are some potential security flaws to this solution: Your Card is kept in your passbook and you can choose to sync it with your iCloud. Your thumb print, as we were told, on the other hand, will never leave your phone. Or at least apple is promising this to us. So: theoretically I can back up my passbook, with my card info to my iCloud. Then I can take a brand new iPhone, download this passbook info to it, and I can use a different fingerprint to for this phone. Well that is fine if I say loose finger I used previously but not so great if someone else gets to my iCloud password and downloads all my info to fresh device.
you could not be any more wrong, the card information does not get stored in the cloud, at all. The card holder’s name, card number and CVV are not presented to the merchant at all, so it’s more secure than using a card. If you buy a new device, or even change devices and restore from an iCloud backup, you have to readd all your cards, I would know, I went from a 6 to a 6 Plus.
Where is the security in that ? What is someone steals your wallet and then just randomly goes to stores and buys things ?
We dont have wireless cards in the US either.
I have a NFC enabled Visa card and last I checked I am in the US. I’m going to go way out on a limb here and guess I am very much not alone.
There are reasonable limitations to wireless payment in how much can be paid and so on.
What is the value limit on your Wireless card when used without any other verification? 20€ or 10,000€?
CurrentC’s system is designed to do one thing – market to you after the purchase. Otherwise, why keep ANY info?
Plus, having to photograph QR codes is just cumbersome. No one is going to use this system. I have doubts that even Apple Pay, or any payment system, will take off any time soon in the US. And especially not CurrentC.
What a bullish*t answer. Thank God I’m already boycotting Walmart CVS and RiteAid
Actually, it is too bad that you are already boycotting Wal-Mart, CVS, and Rite-Aid. Because, you aren’t their customer now so they really don’t care if you are upset about this. What is needed is for their current customers to get upset enough to reduce their spending at these stores and to make sure that they know exactly why their customers chose to go somewhere else.
In the end, I feel sorry for CVS and Rite-Aid. Wal-Mart has enough money to consider what this cluster%^$# is going to cost in wasted training and equipment as a small speed bump. The smaller and less capital rich companies might not recover.
Honestly, how much money are these companies going to spend on the CurrentC hardware and training on using it? Just for something that is doomed to failure before it even gets started.
Simple. Walmart dosen’t want Apple Pay in their store because they will make less money if they do.
Simple, and true.
Current C is neither secure nor widely accessible
Widely accepted payment options: cash, credit card :D Why have something else making your life more convenient :D
Here is a copy of emails and complaints I have been filing with CVS, Target, Best Buy, Lowes and others. These retailers, by complying with CurrentC rules have taken away my choice to protect my credit card number and have taken away a payment option for the consumer
“This letter is to let you know that I have decided to stop shopping at your stores because you have elected to take away my choice of using Apple Pay as a payment method. To remove that as an option is tantamount to a slap in the face. You have every right to stop using Apple Pay, I don’t deny that. I am a victim of having my credit card number stolen through one of the recent hacking schemes and for you to take away the right for me to protect my privacy and protect my credit card information is not acceptable.
The interesting thing is that I don’t have an IPhone 6 yet, but it ordered. I will be using it protect my information and since your company prohibits me from doing that I cannot do business with you.”
And, by the way, I have stopped going to these retailers. If enough people stop patronizing these stores, they will get the hint. Folks please complain to the these retailers. Companies like Walmart, Best Buy, Lowes, CVS, Rite Aid etc are taking away our right to protect our privacy and credit card information and taken away a payment option. Walmart may say they want a payment option that is widely accepted. Really? Do they mean one that is widely accepted by them at the cost of taking away an option from me?
There other points to consider here that I didn’t mention in my letter to these retailers.
In order for a consumer to use CurrentC, they must register and give them their checking account number. When that form of payment is used, then the retailer is paid by taking the money out of the users checking account. The retailer avoids the credit card fee. While that is obviously good for the Walmart, it is not so good for the consumer. What happens when the system is hacked and your bank account information is in the hands of the thief? I shudder to think. I am very protective of my credit card info, even more so with my checking account number. I rarely give that to anyone, especially online (and another reason to never use a debit card online.) What happens if a mistake is made in the transaction, such as $800 out of your checking account instead of $8 or $80 and your house payment bounces? It would be a very cold day to allow a retailer like Walmart to have access to my checking account.
The other thing with CurrentC is that if gives the retailer the ability to track you. Yes, its true that the loyalty programs do that as well but that normally stays within the retailer. With CurrentC who knows where the tracking will go. Will Walmart know what my “track” record is with Lowes, CVS, Best Buy and Target? Thanks, but no thanks.
I’m sure Walmart would take it if it was integrated with WIC.