Tuesday, December 02, 2014

Should #Retailers Accept #ApplePay?

Apple Pay is probably the most innovative feature the new Iphones has. It has been years that cell phones company are looming on the mobile payment business. Apple has probably at the moment the best technology, it is one of the leader handheld manufacturer, and has probably a shot at getting the pie.

This news came up as Credit Card hack scandalls spring up. 

But the issue is that retailers are not keen on letting Apple getting in the business. When you run a business like Walmart that counts for about $500 millions in sales wordlwide, a tiny fee per sales could represent a lot. Here is a very interesting article that asks the question if Retailers shall accept Apple Pay. And It Emphasize on the reason why retailers are not proactive.

MCX was launched in 2011, led by Wal-Mart Stores Inc.,​ expressly to develop a mobile payment product. That product is CurrentC, which will be available sometime next year. MCX is a coalition of more than 50 retailers, including (besides Wal-Mart), 7-Eleven, Inc. Best Buy, CVS, Rite Aid, Lowe’s, Michaels, Sears, Gap, and Target.
In September, Wal-Mart Stores and Best Buy announced they wouldn’t accept Apple Pay, and in October CVS and Rite Aid came along with a similar pronouncement. 
The article emphasizes on the fact that Walmart should accept Apple Pay as it could be a bargain for customers.

But I think that Walmart is right to negociate hard on that.
Indeed, so far no actors is currently on the market, and there is no way Apple Pay could get big without Walmart or 7/11. Now the main question is: Who will actually be able to developp the winning technology? I bet that mobile phone manufacturers are not the best placed one. I would bet more on Visa and/or mastercard that are currently sharing the credit card market.

What do you think about it?