Category: QR Codes

The newly released mobile wallet from Apple is already being shut down by the competition.

According to The New York Times, Rite Aide and CVS Health, two prominent retailers in America, stopped Apple Pay from working in their stores across the country over this past weekend, and although the decision may not make sense in terms of ensuring customer satisfaction, as a business decision it makes more sense considering these retailers and others are planning to implement a mobile payments system that will compete with Apple’s.

A group of retailers are currently working on a mobile payments system called CurrentC

Although CVS did not comment on the decision, A Rite Aid spokesperson, Ashley Flower, said that Rite Aid “does not currently accept Apple Pay,” and that the company was “still in the process of evaluating [its] mobile payment options.”

Furthermore, while Apple also declined to comment on the recent actions taken by the retailers, the chief emerging payments officer at MasterCard, Ed McLaughlin, said that MasterCard believes customers should be able to pay using any method they want and that Rite Aid and CVS made the wrong choice. The well-known credit card company has teamed with Apple on the new system.

However, while the move made by many retailers across the US to disable Apple’s contactless payments has come as a surprise to many, analysts say that disabling Apple Pay could have been a decision that was made to benefit a rival m-payments system known as CurrentC, which is currently being developed by Merchant Customer Exchange (MCX), a consortium of merchants, which include CVS, Rite Aid, Gap Inc., Walmart, and Best Buy, among others.

Many believe that Apple Pay will give CurrentC a run for its money.

CurrentC, which is set to be released in 2015, will be connected to the debit account of consumer’s who uses it via an app that users download. This means the payments system would bypass credit card companies, which could mean that merchants might potentially save money on how much they pay in fees for every transaction. To make a purchase, the merchant has to scan a QR code, which initiates the transaction.

Apple Pay, on the other hand, only works with the company’s newly released iPhone 6 devices and it basically supplants tradition credit cards, giving consumers the power to pay for their merchandise with a wave of their smartphone using NFC (near field communication) technology. Presently, over 220,000 retailers are equipped with this technology.

The New York Times reported that those who are opposed to CurrentC say that the system will be harder to use than Apple Pay, as it will require customers to unlock phones or open an app, which is more complex than simply paying with a credit card or cash. McLaughlin believes Apple will win in the end because its payment system “is the most convenient, most secure, and what’s best for consumers.”

Half of all card payments may be mobile within the next five years

PayGate, a payment service provider, believes that half of all card payments will become mobile within the next five years. The company recently added Zapper to its mobile payments systems, allowing it to reach a larger demographic in South Africa. PayGate has been taking steps to establish a stronger presence in the growing mobile commerce space. The company believes that the mobile world will see explosive growth in the coming years.

PayGate continues to work to provide its clients with the ability to accept mobile transactions

As a provider of payment services for online businesses, PayGate has a vested interest in becoming more mobile-centric. The company wants to ensure that its clients have the ability to engage mobile consumers effectively and is working to make new tools available to these clients. QR codes are part of PayGate’s push into the mobile space. The company suggests that these barcodes have become one of the most useful mobile commerce tools, due largely to their simple nature and the fact that they can be produced at little expense.

QR codes are becoming effective mobile commerce tools

QR codes have long been used in marketing. These simple barcodes can be scanned by nearly every smartphone currently available and have served as an effective way for retailers to engage mobile consumers. Over the years, these codes have become mobile commerce gateways. Retailers have been using them to facilitate mobile payments, and QR codes have lead to the rise in “pop-up” stores in many parts of the world. These stores use QR codes to sell products that can be delivered to a shopper’s home.

Mobile commerce is gaining traction throughout South Africa

In South Africa, mobile commerce is becoming more popular. The demand for mobile shopping and payment platforms is growing among consumers as smartphone penetration increases. Companies like PayGate have a lot to gain by enabling other businesses with the ability to accept mobile payments, especially as the mobile space continues to see aggressive growth over the coming years.