This is where things could get a bit sticky.
In the current battle between Apple Pay and MCX’s CurrentC system, retailer Walmart has opted against supporting Apple Pay in its stores. A new report offers a big reason why: high credit card transaction fees.
According to 9to5 Mac and Re/code, a current report reveals that the fees merchants are required to pay banks when a credit card is swiped in their stores is too high. Meanwhile, MCX’s CurrentC has payment options that carry lower fees than credit card purchases.
Given that Apple Pay supports both Visa and MasterCard, which set the fees that Walmart and other MCX retailers believe is too high, the report claims that Walmart feels the iPhone-based payments service does not support its fight for the payments fee structure to be changed.
“Since Apple Pay supports Visa and MasterCard credit cards, Walmart and other MCX retailers believe the iPhone-based payments service just perpetuates the traditional payments fee structure they despise,” claims Re/code. “The MCX’s CurrentC app, on the other hand, favors transactions funded by store-branded cards or a connection with a customer’s checking account — all of which carry lower fees than credit card purchases.”
Merchant Customer Exchange (MCX) consists of several other retailers, including CVS, Rite Aid, 7-Eleven, Best Buy, Lowe’s, Publix, Sears, Shell, Sunoco and Target. MCX’s CurrentC has an expected launch date of early 2015.
Walmart has yet to provide any comment on this issue, but stay tuned for additional details as they become available.
2 replies on “Rumor: Walmart opting for CurrentC system over Apple Pay due to high credit card transaction fees”
WalMart and the other MCX merchants are after the 1 – 3% card fees, but they don’t want to give up their customers’ personal identifiable information. That’s the basis of future sales for them. And that’s the information the harvesters want, too. Guess I’ll be shopping at places that don’t have anything about me to harvest from now on, whenever possible.
If more Walmart customers used iPhones and their purchases offset the CC costs of ApplePay, I would think they’d be all over it.