Some retailers are blocking Apple Pay and launching a competitor

By David Nield October 26, 2014

early apple pay problems could put off users says survey pos — Image used with permission by copyright holder

Apple Pay hasn’t been live for more than a week, but already it’s causing rifts between Apple, banks and retailers. Big name chains including CVS and Rite Aid have reportedly shut down NFC support in their stores, joining outlets like Best Buy and Walmart who didn’t support the new service to begin with. It’s believed that the imminent arrival of a competing service called CurrentC is the reason for Apple Pay getting the cold shoulder.

CVS and Rite Aid were not official Apple Pay launch partners but the technology worked with their in-store NFC readers. According to MacRumors, that functionality has now been disabled, cutting out competing services such as Google Wallet at the same time. Based on an internal document leaked to SlashGear it looks like these retailers want customers to use CurrentC instead, slated to arrive at the start of 2015.

A company called Merchant Customer Exchange (MCX), backed primarily by Walmart, is behind the upcoming CurrentC platform, which uses QR codes to enable customers to scan and purchase goods in stores. Based on some digging done by TechCrunch, the service will include loyalty rewards and discount offers, and is the retailers’ attempt to avoid paying credit card fees (somewhere in the 2-3 percent range).

If CVS and Rite Aid have signed exclusive deals with CurrentC then this would of course oblige them to cut out any rival offerings, such as Apple Pay. Still, it’s a shame for consumers that extra convenience and simplicity are once again being sacrificed to a turf war over who handles the dollars that are spent. As CurrentC makes use of QR codes it will be compatible with a broader range of handsets, but it doesn’t have the Touch ID-powered ease-of-use that Apple Pay brings to the table.

The future of cashless payments is at stake, and it looks like the major players are prepared to do whatever it takes to come out on top. If you find your next Apple Pay transaction declined, then you’ll know why. Find out which stores definitely will accept the new technology with our list of Apple’s official partners in the scheme.

Editors' Recommendations

Topics

Apple

Contributor

Dave is a freelance journalist from Manchester in the north-west of England. He's been writing about technology since the…

Mobile

Grab a 4-pack of Apple AirTags while they’re on sale

Person holding an Apple AirTag.

If you're one of those people who always keep misplacing their stuff, then you may want to take advantage of Walmart's offer for the Apple AirTag. Four of the Bluetooth trackers, which will make sure that you never lose anything again, are available for just $80, following a $19 discount on the bundle's original price of $99. There's no telling how long this lowered price will last, so if you think you'll find some use for these tracking devices, it's highly recommended that you proceed with the purchase as soon as possible.

Why you should buy the Apple AirTag
The Apple AirTag is highlighted in our roundup of the best Bluetooth trackers as the top choice if you're invested in the iOS ecosystem. In addition to a quick and easy one-tap setup to link the tracking device to your iPhone or iPad, the Apple AirTag uses Apple's Find My network to keep track of your things. Precision Finding with Ultra Wideband technology will lead you to your Apple AirTag, with the help of the millions of devices in the Find My network that will work together to locate your missing item when you activate Lost Mode.

Mobile

What is NFC? How it works and what you can do with it

NFC settings on an Android phone.

Near field communication (herein referred to as NFC) is a smartphone and wearable technology that lives in the shadows. Silently operating around the clock, NFC is relied upon for several device functions, with wireless transaction systems like Apple Pay, Google Pay, and Samsung Pay being one of the biggest. But this cool tech can do far more than let you pay for a Twix with your iPhone.

Here’s everything you need to know about NFC technology, and the many ways you can use the wireless protocol today.
What is NFC, and how does it work?
NFC, which is short for near-field communication, is a technology that allows devices like phones and smartwatches to exchange small bits of data with other devices and read NFC-equipped cards over relatively short distances. The technology behind NFC is very similar to radio-frequency identification (RFID) commonly used in the security cards and keychain fobs that you likely already use to get into your office or gym. In fact, NFC is an evolution of RFID that offers more advanced features and better security, but the two technologies still share a lot of things in common.

Mobile

Apple boss Tim Cook launches charm offensive in vital market

Tim Cook inside an Apple Store in Shanghai.

Apple chief Tim Cook is spending a few days in China, one of the tech company’s most important markets and a major product manufacturing hub.

His visit comes as iPhone sales in the country dropped 24% year-on-year in the first six weeks of 2024, according to data from Counterpoint Research. The slump was attributed to strong competition from local tech firms such as Huawei, although "abnormally high" sales in January 2023 were also a factor.