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Wal-Mart Rejects Apple Pay to Pursue a Competing Mobile Payment System

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Wal-Mart said it will not join Apple’s new mobile payment system and will continue developing a separate one.

Apple has dominated the smartphone market and now tens of millions of people in the United States on their product, Apple has also partnered with a broad range of the country’s largest banks, credit card companies and retailers, including Disney, McDonald’s and Macy’s.

Wal-Mart is even larger — hundreds of millions of people shop at its stores every week.

Will they create a new payment “war”?

>“There will be a dominant player to come out of CurrentC versus Apple. I’m not willing to handicap either one right now…you’ve got major players in CurrentC, you’ve got eight of the top banks and credit card issuers in Apple Pay,” said Michael Archer, a partner at retail consultancy Kurt Salmon Associates. “The interest level in the space is always going to be challenged if there are competing players. The opportunity, and maybe a need, for convergence is there.”

Apple Pay is soon to launch.

Wal-Mart gives no reason why they have declined to Apple Pay.

Apple refuses to respond.

CurrentC may be a better option than Apple Pay.

CurrentC could impose a radical change on the credit and debit card system. Customers can either load cash onto the app or allow the app to take funds directly out of a checking or savings account.

Retailers such as Walmart would avoid paying “swipe” fees as the system is not currently online with regular credit cards.

Both CurrentC and Apple Pay require shoppers to pay for goods and services using an app on their smartphones. Such systems are touted to be more secure than an ordinary credit card.

The systems have a few primary differences.

*CurrentC works on any smartphone, not just the iPhone.
*CurrentC app creates a QR code that can be recognized by most scanners at most retailers.

*Apple Pay uses a chip that sends signals a short distance through the air using technology called Near Field Communication, or NFC. But only 10 percent of merchants have active sensors. Apple has ordered retailers to upgrade their registers to models that will include NFC tech.
*Apple’s system allows users to load their credit or debit card onto an iPhone via the NFC system.

True hacker protection has still not been answered.

>James Wester, research director of global payments at IDC Financial Insights, “Just because Apple is now responsible for us getting to this tipping point doesn’t mean Apple is necessarily going to win,” Wester said. “They’ve got a very cool solution that is very similar to the solution that other people have come out with, but Apple is really good at user experience and has loyal customers. … That’s something you can’t discount.”

On other fronts, Google and other companies have mobile wallet systems that have simply failed to gain traction, and there is no telling whether Apple Pay and CurrentC will meet the same fate.

>“While these two platforms are big enablers that does not automatically guarantee success. We still need to see whether consumers will find the value proposition enough to start using the system,” said Rajesh Kandaswamy, a research director at Gartner. “This pits powerful players against each other, but they are not the only ones.”


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“Wal-Mart Rejects Apple Pay to Pursue a Competing Mobile Payment System”