Apple Inc.’s (NASDAQ:AAPL) new method of mobile payment called Apple Pay has seen some severe opposition from many retailers like Wal-Mart, Best Buy, Target, Gap, Rite Aid and CVS – something the tech giant does not want because all these are big names in the retail industries. It seems that the 2 drug store’s decision is firm because of the fact that Rite Aid and CVS actually tried the Apple Pay for a while and then rejected it later along with Google Wallet – rejection after trial, even worse. Both companies have invested in CurrentC, which is due to be launched in 2015, as their new payment method.
Wal-Mart, which is a giant retailer in the U.S, refused to accommodate Apple Pay because the company has already invested in CurrentC as well. CurrentC is a payment method which is being introduced by MCX. The advantage of CurrentC is that it does not need the retailers to install anything extra in their systems; it works with the current checkout terminals. On the other hand Apple Pay requires the retailers to purchase a new system that reads the NFC chip required for the process of Apple Pay. Another reason why retailers would want CurrentC rather than Apple pay could be that CurrentC lets them keep a lot of customer data which Apple Pay does not.
Apple Pay is a secured and simple method of payment in which the user just has to touch his finger on iPhone Touch ID fingerprint scanner and place the phone near the NFC checkout device which scans the NFC chip. CurrentC on the other hand does not require a NFC reader; it works with the current system of payment and just requires a code provided by kiosk. However, CurrentC is not a one step method of payment like Apple Pay. In CurrentC buyers have to scan things and punch in the code to make payments. It completes transactions by getting direct access to the user’s/buyer’s bank accounts unlike Apple Pay. Although CurrentC is not available on the phones yet but many big retailers like Wal-Mart, Rite Aid, Best buy have partnered with MCX and are ready to use the payment method as soon as it comes out.
Apple Pay has the advantage over CurrentC, as it has already been launched but due to the NFC system many retailers are still holding back and do not want to purchase a new system for checkouts.
So far Apple’s website shows 34 retail partners including Apple Inc. (NASDAQ:AAPL) itself. Out of the 34 retailers 8 are different branches of Foot Locker. However, it is still too early to decide whether Apple Pay will be a success or a failure in the long run. The competition between Apple Pay and CurrentC is tough because of the fact that big retailers like Wal-Mart are supporting CurrentC, even before its launch. However, Apple is a huge company and has an advantage of customer loyalty. If the market of Apple Pay increases the retailers will have to eventually give in and allow the payment method in their stores.
