Upon Apple Pay’s debut recently, CVS and Rite Aid (both major pharmacy chains) announced that they would be disabling Apple Pay as a method to make transactions in their stores. Many people took to twitter to complain about their actions but there’s more to their business decision that meets the eye. Most assume that they aren’t accepting it because of possible security, reliability, or convenience issues that might arise but they actually have their sights on a bigger business move.
“Rite Aid, CVS, Walmart, Best Buy (BBY), and about 50 other retailers have been working on their own mobile payments system, called CurrentC.” Contrary to Apple Pay who works with Visa and Mastercard and then charges retailers roughly 2% per swipe, CurrentC is its’ own network and bypasses any fees by credit card companies.
I think this is a good move on the retailers end because they will be saving money by cutting out the middle man but on the other hand, I have to wonder how secure CurrentC will be. Apple Pay has been successful in partnering with retailers because it is seen as an extremely safe and secure network, so one has to wonder if CurrentC will be susceptible to hackers and other potential threats.