Walmart proves clueless in its defense of blocking Apple Pay and Google Wallet
Business Insider on the matter:Here's what Walmart told
Sounds fairly reasonable at first pass. Obviously consumers want a payment option that is "widely accepted" and "secure". But, here are the troubles with the statement:
- There are only 54 merchants who are part of MCX, and approximately 110,000 locations that will accept CurrentC. On the other hand, Apple Pay is currently available at 220,000 locations, and Google Wallet is accepted anywhere that takes MasterCard PayPass, a number somewhere close to 500,000 retailers in the US with plenty more coming as the changeover to EMV happens by October of 2015.
- Given that breakdown, it's hard to see how Walmart makes the leap to say that MCX merchants "serve a majority of Americans", unless what that means is that the majority of MCX customers are American (grammatically, this reading is plausible.)
- NFC payments in general are seen as very secure, and Apple Pay is especially so because of the TouchID fingerprint scanner.
All in all, it seems hard to imagine that MCX and CurrentC will last all that long, if it ever even makes it to market. MCX isn't trying to take on just Apple or Google really; it is also trying to take on MasterCard and Visa, who are spearheading the move to EMV. Given that MCX has no banks on its side, no clear release window for CurrentC, and a mobile payment method based on QR codes, it seems like a losing proposition.
Although, word has it that even Walmart has no delusions of winning this fight. Supposedly, Walmart CEO Lee Scott said that he doesn't care if CurrentC is successful "As long as Visa suffers."