Wal-Mart Stores, Inc. (NYSE:WMT) and a number of retailers have combined forces to fight what they term to be unnecessary charges, imposed by credit card companies on transactions carried out in their stores. The merchants are trying to get a good foothold of the credit card market that is valued to be worth $4.5 trillion.
Skepticism about CurrentC
The standoff involving the transaction fees has seen most of the stores lock out Apple Inc. (NASDAQ:AAPL)’s Apple pay out awaiting the release of a new mobile system called CurrentC. Drugstores CVS Health Corp (NYSE:CVS) and Rite Aid Corporation (NYSE:RAD) have already withdrawn Apple Pay services prompting an outcry from consumers who believe they’re being denied of a user friendly payment system.
Mobile payment experts are remaining skeptical about CurrentC ability to thwart Apple Inc.
(NASDAQ:AAPL)’s payment system in the wake of reports that it and been hacked while under trial. The latest push by Wal-Mart Stores, Inc. (NYSE:WMT) is an attempt to get rid of credit card companies out of transactions carried out by customers or force them to reduce the amount they charge.
The consortium of merchant calling itself Merchant Customer Express reiterates that CurrentC will work with any phone while allowing them to integrate loyalty programs something that is not possible with Apple Pay. Wal-Mart Stores, Inc. (NYSE:WMT) is fully entrenched in the push and is currently suing Visa for $5 billion over what it says to be excessive card swipe fees that the company charges.
Walmart Firm Stance
Apple Pay is completely different from CurrentC as it encrypts all the payment data keeping it out from the reach of retailers. CurrentC, on the other hand, connects to customer’s bank account, information that retailers can use for loyalty programs and also offering discounts.
Walmart has made it clear it is not considering the option of supporting Apple Pay anytime soon. Target Corporation (NYSE:TGT), on the other hand, is employing a nuanced approach whereby it plans to use CurrentC for in-store checkouts while allowing online transactions to be carried out on Apple Pay.