Apple vs Retailers. War on NFC payment technology.

[ijKs Snow]

Original articles from Business Insider, Slate, and Reuters.

 

http://www.slate.com/blogs/business_insider/2014/10/28/apple_pay_retailers_like_walmart_will_lose_using_currentc_will_lose.html

 

http://finance.yahoo.com/news/apple-ceo-fires-back-retailers-051413454.html

 

I remember having a conversation with another member of this forum on why the U.S. is so slow to adapt to NFC technology, in essence making NFC technology itself seem useless. My point of view was simple. Apple didn't support NFC, which is why NFC never caught on in the U.S. Meanwhile other countries like Hong Kong, Singapore, South Korea, Japan, etc. NFC is a way of life. They pay everything with their phones due to the various third party companies that fully support and build upon NFC technology.

 

Now, when the new iPhones launched with NFC chips, I assumed it was due to demand from East Asian countries because till now only non Apple phones had NFC.

 

It seems Tim Cook has other plans.

 

Apple recently launched Apple pay, which is basically like Google wallet and pretty much all the major retailers in the U.S. jumped on board.

 

But, with everything in the U.S., couple major retailers are making it difficult for Apple.

 

Quote

Apple Pay launched about a week ago and saw more than a million credit cards registered over the first 72 hours. It already totes up more transactions than all other "contact less" payment methods combined, Cook said, citing Visa and Mastercard data.

Such services, through which a user pays by holding a smartphone close to a specially designed terminal, have failed to catch on in the United States despite the backing of Google Inc (GOOG.O) and other influential players.

 

It seemed like everyone was on board to finally take our country to the next step of consumer technology, but recently, two major retailers jumped ship.

 

CVS and Rite Aid stopped accepting Apple Pay last week.

 

Why? They already have all the machine and infrastructure in place. Why opt out now with no explanation?

 

Well, market researchers are making an assumption that these two retailers jumped ship because they are willing to develop their own in-house version of NFC payment infrastructure to avoid paying the 2-3% fees per transaction.

 

Quote

Cook argued on Monday that Apple Pay offered better security and privacy than competing services, and that retailers risked alienating customers by limiting choices at checkout.

"It's a skirmish," Cook said in response to a question about the retailers' moves.

"Merchants have different objectives sometimes. But in the long arc of time, you only are relevant as a retailer or merchant if your customers love you."

 

I agree with Cook. Who the heck wants 10 different apps for different stores? Just accept Apple Pay and Google Wallet.

 

For once, let's simplify technology.

[TheSLSAMG]

Two major retaIlers?

Try a shitload.

 

http://en.wikipedia.org/wiki/Merchant_Customer_Exchange

[Victorious Secret]

I'm glad you mentioned Google Wallet, they are affected equally because of retailers asshattery. 

 

Apple Pay, Google Wallet AND the individual contactless cards are affected. These retailers disabling NFC affects regular cards too. 

These guys are fucking over everyone just so they can mine their data with no fraud protection. Not that Google and Apple don't want your data anyways, but Google and Apple are being backed by banks who can shoulder the fraud charges and offer consumer protection. 

Current offers NO protection, it takes right from your bank account which is a big ask for many people. I was hesitant to give PayPal access to my checking account, I'd NEVER give these guys access. 

 

In short, screw these guys for deliberately handicapping a better payment option in order to keep their broken and dangerous payment option. 

[d3sl91]

If people do not accept what I have in my pocket, they will not be getting my money, simple as that.

 

Of course, I have a couple of debit cards and a credit card (and my google wallet card), so I'm fine. But when (and if) I start using NFC more, and they only accept apple pay, or only accept anything else, I will leave my stuff at the counter, because I'm not going to start installing more and more apps just to use my money. 

[ijKs Snow]

Two major retaIlers?

Try a shitload.

 

http://en.wikipedia.org/wiki/Merchant_Customer_Exchange

Yeah, MCX seems to be making their own App for payments.

 

Luckily, Wal-Mart, BestBuy, etc. didn't opt out of Apple pay as of yet. They probably will if MCX starts rolling CurrentC out of beta.