And it is taking place right now in your neighborhood. No, I'm not talking about ISIS invading your neighborhood, what I'm talking about is credit card payments to merchants.
Earlier this month, Apple announced its mobile payment system called ApplePay. The Apple iPhone 6 uses a technology called Near Field Communication or NFC, which is built into their new iPhones to pay for a product in a store that supports this technology. This is similar to Google Wallet which uses the same technology.
On one side of battlefield you have Apple Inc. (NASDAQ:AAPL), on the other side you have a consortium of merchants led by Wal-Mart Stores Inc. (NYSE:WMT), , which includes CVS Health Corporation (NYSE:CVS) and Rite Aid Corporation (NYSE:RAD). That consortium whose name is MCX (The Merchants Exchange) want to use their own mobile system that they have been developing since 2012. That system is named CurrentC. What's that going to do for consumers? You only have to look at the MCX website to understand what their goal is.
From the MCX Web site: "Merchant Customer Exchange is the only merchant-owned mobile commerce network built to streamline the customer shopping experience across all major retail verticals."
From the press kit: "It will also offer innovative features and benefits, such as merchant loyalty programs and instant coupon savings, all stored on the phone and available right at the point-of-sale."
Sounds very similar to Google wallet and ApplePay, does it not? Mobile payment solutions such as Google wallet have not really caught on with Millennials or anyone else for that matter. It was only when Apple came along with their new payment system that the MCX realized they had to attack. The first part of the attack was putting pressure on CVS Health Corporation (NYSE:CVS) and Rite Aid Corporation (NYSE:RAD) to turn off their NFC receivers on their cash registers so ApplePay would not work. What is strange is that Target, who is also a member of MCX, will accept ApplePay as it offers a more secure and superior method of payment over a regular credit card. Looking at some of the recent challenges that Target has had with credit card theft, it is understandable.
So today's poll question is:
Loading ...If you have any comments you'd like to share with us about this post or about mobile payments in general, please feel free to leave them below this post.
Life is never boring, even in the mobile payments section.
Every success with MarketClub,
Adam Hewison
President, INO.com
Co-Creator, MarketClub
I think only a system that is available at all platforms (Apple, Android, windowss ..) will have a chance to "win".
There have been/will be many such "wars". Way back when--there was a battle between Sony's Betamax video recording system and the VCR recording system. One of the members of the VCR consortium made a key electronic component for Sony's system and they could not get enough quantity product made and delivered to Sony.
Once VCR became established as the dominant system, the bottleneck vanished and Sony could get all the parts they needed. Funny how those things happen. Could be some obscure part or patent or marketing agreement will decide this one too.
p.s.
Friends who made videos and those making movies used the Betamax because of its far higher quality, so it is not always the best that wins.
M,
You are correct. Just look at Microsoft and Apple in the early 80's.
Great observation - I appreciate your views and feedback.
Many Thanks,
Adam
Adam Hewison
President, INO.com
Co-Founder of MarketClub.com
Mike,
You make a good point.
Thanks for contributing your views to the conversation, much appreciated.
Adam
Adam Hewison
President, INO.com
Co-Founder of MarketClub.com
It's called 'Near Field Communication', not 'Near Frequency...'
Henri,
You are 100% correct.
Changes made.
Thanks,
Adam
Adam Hewison
President, INO.com
Co-Founder of MarketClub.com