Apple Pay continues to show gleams of success but on the background, there is a raging battle from 50 companies who are calling themselves Merchant Customer Exchange. Merchants in the group are obligated to accept a new system called CurrentC as opposed to Apple Inc. (NASDAQ:AAPL)’s new system. A fine, on the other hand, would be handed to any of the merchants who fail to comply with the new system.
Companies against Apple Pay
CurrentC was developed to compete hand in hand against other mobile payment systems more saw Apple Pay that continues to gain traction in the retail space. Some of the retailers in the MCX contractual agreement have already started disabling the Near Field Communication terminals as they look to bar Apple Inc. (NASDAQ:AAPL) users from using Apple Pay in the retail stores.
Google Inc. (NASDAQ:GOOG) has also been enjoined in the ongoing standoff as its mobile payment system; Google Wallet has been put on hold in some of the retail stores. Some of the giant retail stores that are giving Apple’s mobile payment system a cold shoulder include Wal-Mart Stores, Inc. (NYSE:WMT) and Best Buy Co Inc. (NYSE:BBY). The stores are reportedly working on the CurrentC system that will be used to connect customer’s bank accounts or credit cards data to facilitate mobile transactions.
Target Corporation (NYSE:TGT) has already barred Apple Pay in its stores even though it is in partnership with Apple Inc. (NASDAQ:AAPL) for online transactions. The standoff highlights how the race for mobile payment systems that has the potential to clock highs of $900 billion is heating up.
Apple Pay Threat
CurrentC is not yet available as it is being developed; some of the members waiting for it could miss out on untold mobile transactions especially with holiday shopping frenzy round the corner.
Should merchants continue to resent Apple Pay, they may receive customer resentment taking into consideration the frenzy behind iPhone 6. If Apple Pay is to gain a substantial amount of market share. It might turn out to be a tall order for retailers on CurrentC to convince customers already using the service to make the switch.
Retailers are pushing for CurrentC as it would give them the opportunity to track shopping habits across the dozens of stores that belong to MCX unlike with Apple Inc. (NASDAQ:AAPL)’s service.