Apple released two big smartphones — iPhone 6 and iPhone 6 Plus, but the eye catching announcement was about Apple Pay, a new type of NFC-based payment system. However, the two major retailers Walmart and Best Buy won’t be joining in Apple new payment system. Surprisingly, Walmart revealed that it will develop a new payment system that defines how a new payment system should be. Walmart has millions of customers and has a solid customer base, they are rallying after a different payment system, CurrentC.
Michael Archer, partner at retail consultancy Kurt Salmon Associates said
“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,” “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.”
The Apple new payment system is planned to launch next month, but Walmart has declined for Apple Pay. Wal-Mart has said that it has no plans to merge with Apple new payment system.
James Wester, research director of global payments at IDC Financial Insights said,
“Just because Apple is now responsible for us getting to this tipping point doesn’t mean Apple is necessarily going to win”,”But Apple is really good at user experience and has loyal customers… that’s something you can’t discount.”
Apple used NFC chip to send signals from the device to the merchant sensor, only about 10% of the retailers are using those technologies and it will require $500 to install that kind of sensors. But CurrentC works on any sort of smart devices, CurrentC uses QR code to recognize the consumer details and QR code can be easily read via barcode readers itself. So CurrentC has a large potential for both consumers as well as retailers too.
Rajesh Kandaswamy, a research director at Gartner, a technology research firm said.
“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”, “This pits powerful players against each other, but they are not the only ones.
The NFC payment system requires retailers to install NFC readers at the checkout counters to accept the payments. As of today, only 10 percent of the merchants use such readers. Back in 2011, Best Buy had NFC-powered scanners at many of its stores across the United States, but the expensive costs made them to stop using such payment system. According to a Best Buy spokesperson, the company is not planning on going back to the same payment systems again, despite the push by Apple for its new payment service Apple Pay.
It’s highly dependent on the hands of the consumers and also they need to choose which payment terms suits well for their day to day activities.
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