Retailers typically try to make it easier for customers to buy stuff. But despite that fact that a majority of consumers like Apple Pay, Wal-Mart, Best Buy, Rite Aid and CVS have decided to stop accepting it.
So what’s the deal?
“This move by merchants is being attributed to the fact that they have their own mobile payment system in the making, CurrentC, which is set to launch early in 2015,” writes siliconANGLE.
CurrentC is another mobile wallet from Merchant Customer Exchange which would compete head-to-head with Apple Pay. It has not yet launched, but it will soon. And Wal-Mart, Best Buy, Rite Aid and CVS are all members of Merchant Customer Exchange.
Today, CurrentC got hit with some bad news. The new system not even publicly available yet, was hacked.
MCX is testing the system in several secret locations. USA Today reports that the company was “targeted in a breach involving email addresses.”
“We own this, and are taking it seriously,” said Dekkers Davidson, CEO of the Boston-based company.
During the first 72 hours of launch earlier this month, Apple Pay activated 1-million cards.
The launch of Apple Pay was far from flawless. Some consumers reported getting double-charged.
But aside from that, an online poll by Business Insider shows consumers largely love it.
A whopping 58% found it “insanely cool” and 21% said they “might mix it in with other payment methods.”
“Over the long arc of time,” Tim Cook, Apple’s CEO said, “retailers will have to do what shoppers want.”
Marketing for Apple Pay has been immense.
“Apple… used every conceivable channel to create awareness, buzz and desire for mobile payments,” writes Mike Dudas in his Just Dudas column on Business Insider. “I’ve seen television ads from MasterCard, merchant in-store digital marketing at Duane Reade, e-mails from my credit card issuers and online marketing galore. The marketing has been simple and straightforward.”
Still the LA Times reports that less than 10% of retailers “from major chain stores to small mom-and-pop shops” have signed on to accept Apple Pay.
Those same large retailers that chucked Apple Pay also unplugged Google Wallet, the mobile pay system from Google.
“I will never use CurrentC to pay. I am angry that many stores are adopting CurrentC and shutting out Apple Pay and Google Wallet,” writes Ron Olszowka on CurrentC’s page on iTunes. “I hope that Apple and Google ban your app from their phones.”
Public relations experts say if consumers perceive that top retailers are choosing greed over customer convenience, the move by Wal-Mart, Best Buy, Rite Aid and CVS could backfire and hurt profits.
“They are taking a big risk with profits by taking this position,” says Glenn Selig, founder of the strategic public relations firm, The Publicity Agency. “These companies are banking that customers will not miss Googe Wallet or Apple Pay. But what if they’re wrong?”
SOURCE: The Publicity Agency
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