Is MCX being forced to deliver on its payment solution promise?
Well, perhaps ‘forced’ is too strong a word, so let’s call it ‘time to put up or shut up’. For the uninitiated, I am talking about the Merchant Customer Exchange (MCX). Some of you may remember that, about a year ago, soon after the launch of Apple Pay, both Rite Aid and CVS Health disabled the contactless payment features of its credit card terminals. “Given that we are still in the process of evaluating our mobile payment options, Rite Aid does not currently accept Apple Pay,” Ashley Flower, Rite Aid’s senior manager of public relations, said in a previous statement at the time.
This was due to an agreement with MCX partners including that they would not adopt alternative mobile-payment systems for a period of time while they worked on getting their own payment solution, called 'CurrentC', off the ground. The news that both retail chains had disabled their contactless payment acceptance on their stores’ POS caused a lot of ruffled feathers from consumers and mobile payment bodies alike. MCX acted as spokesperson on the matter and appeared to do more about-turns than an soldier on a parade drill. However, that waiting period is now up and the retailers that make up the MCX are now free to use alternative payment solutions in the form of Apple Pay, Google Wallet and Android Pay, and Samsung Pay.
Perhaps this is what has forced MCX, three years after announcing their intention to enter the mobile payment market with CurrentC, to finally begin trials. Wal-Mart Stores, Target and Darden Restaurants will begin its first public tests of its mobile-payment application at several member retailers and restaurants in Columbus, Ohio, in the coming weeks. With MCX losing its exclusivity with its retail partners, some of the MCX partners have already announced they are looking to accept some of the alternative payment solutions out there.
Rite Aid, one of the original chains to disable contactless payment announced last week that they would start to accept Apple Pay. That means customers who use Apple Pay on the iPhone 6 will be able to use it at all of Rite Aid’s 4,600 stores across the country. Additionally, Rite Aid will begin accepting other contactless payment options, including tap-to-pay credit cards and Google’s upcoming Android Pay. “Increasingly, consumers are actively seeking out and incorporating mobile technology into many facets of their life, including their shopping and purchasing decisions,” Ken Martindale, CEO of Rite Aid Stores and president of Rite Aid Corporation, said in a statement. “By accepting mobile payments, we’re able to offer Rite Aid customers an easy and convenient checkout process, which we know is important to them.” Founding MCX partner Best Buy said it also plans to accept Apple Pay in stores later this year.
Retailers and restaurants partnered to create MCX in 2012 as a way to jump ahead of technology companies in the race for a popular mobile-payment system and to avoid credit card fees that cost retailers billions of dollars each year. But the effort has been stymied by challenges inherent in creating a new payment system without using credit cards, as well as internal conflict between the retailers on strategy, according to former employees. CurrentC relies on what some consider to be a less secure means of payment processing. CurrentC enables users to pay in-store by pointing their camera at a one-time barcode displayed on a retailer terminal to authorise payment. The payment amount is directly deducted from the user’s bank account, which is linked with CurrentC on the backend.
Let’s wait and see what results Columbus, Ohio, gives us on CurrentC. The phrase, ’a day late and a dollar short’ springs to mind, however. Over to you, Columbus, Ohio!
And finally… Since contactless payments were first accepted on London public transport a few years ago, it's become increasingly easy to get around the capital without cash or a loaded Oyster card. Whether you're equipped with a contactless card, Apple Pay or another mobile wallet, you can ride the vast majority of London transport services hassle-free. As of last week, you can now use contactless payments on the Emirates Air Line cable car, too. I know (OK, I found out last week), that it's a limited service that only travels between the Royal Docks and the Greenwich Peninsula, but if you're after some amazing views of the capital, not having cash on you will not stop you (are you listening, out-of-town tourists?). With this addition, London's transport network is almost as contactless-friendly as it can get, with Thames riverboats now the only service that still requires an old-fashioned ticket purchase. Perhaps that will change soon…
Our Contactless Britannia Roundtable (14th October) page on the Contactless Intelligence site is taking an increased number of hits as more people return from annual leave. Consequently, places are starting to be reserved for the meeting. Remember, this a one-day, two-executive roundtable sessions that will bring together local authorities, BID (Business Improvement Districts) representatives, retail experts and technology providers. We only have a limited number of seats at the table so please, in order to avoid disappointment later, talk to us now if you have an interest in bringing contactless technology to towns and cities throughout Britain. We look forward to speaking to you soon.
Until next time,
Steve Atkins
Contactless Intelligence
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