How stupid is this? Led by Walmart’s payment technology consortium called MCX (Merchant Customer Exchange), CVS & Rite Aid decide to block ApplePay in order to protect the launch of their own QR code system. This will help no-one. NFC, a more widely used, more secure and already well established/well recognized system has been adopted by both Google (Google Wallet) & Apple (Apple Pay). Does anyone remember the VHS vs. Betamax video tape wars?
The benefits of not needing a traditional wallet or having to carry your credit cards around are reason enough, but greater security is the best reason. None of these systems have been quick to catch on and the technology platform needs all of the help it can get for better adoption. While Google and Android handset manufacturers have offered this for years, the entry of Apple into the space will definitely help this to catch on. Adoption helps everybody no matter what system you support.
Apple’s timing is strategic. When fraud with a credit card happens, the issuing banks are currently liable. However, banks are getting ready to switch that liability to retailers unless they adopt new card readers that will accept their new secure EMV cards coming out next year. The new hardware, you guessed it, is EMV & NFC compliant. This means that the only way a retailer can escape liability for credit card fraud, is by adopting the new technology.
Because of this, the likelihood of every single retailer in America switching to the new system is high. Good for GoogleWallet & good for ApplePay.
Following an Oct. 1, 2015, deadline created by major U.S. credit card issuers MasterCard, Visa, Discover and American Express, card-present fraud liability will shift to whoever is the least EMV-compliant party in a fraudulent transaction. Basically, the cost of the fraud will fall back on the merchant if they do not have the hardware to accept the new EMV credit cards. These terminals can also support NFC.
The major credit card issuers each have published detailed schedules about the upcoming shift in liability. The change is intended to help bring the entire payment industry on board with EMV by encouraging compliance to avoid liability costs.
No retailer should care what form of payment a consumer wants to use and no retailer should have to worry about being liable for fraudulent charges.
Consumers want to make their own choice over how they pay and don’t want to be forced into any one retailer’s choice.
It’s time retailers helped vs. hindered the advancement of this new technology.
