Tag: mobile payments

The largest food service retailer in the world is now accepting these smartphone transactions in about 14,000 locations.

Customers who eat at McDonald’s in the United States will now be able to use their smartphones to pay for their orders now that the quick service restaurant has teamed up with the Softcard and its mobile wallet.

This type of mobile payments transaction will be available to customers both in the restaurant and the drive-thru.

To use their mobile wallet service, they will be able to use NFC technology enabled smartphones with the Softcard app. They merely need to tap the device against the near field communication reader at any of the U.S. locations of the restaurant. This makes it the largest deployment of mobile payments via NFC that has ever occurred in a drive-thru setting.

According to McDonald’s representatives, the company is very pleased to offer this new mobile wallet service.

The McDonald’s USA vice president of media and consumer connection, Anja Carroll, said that “We are pleased to announce this national launch after a successful pilot program that began in 2013. Our work with Softcard further reinforces McDonald’s commitment to customer service and convenience.”

Carroll went on to say that by working with leading brands within the mobile payments and m-commerce sphere, “we’re able to deliver a more meaningful experience to our customers that includes greater speed, ease and value.”

The mobile wallet app from Softcard is available for free and brings payments, loyalty, and discount offers together in one digital location. The app is compatible with over 80 different mobile devices across Verizon Wireless, AT&T and T-Mobile. The service works with the contactless EMV global standard as well as with the m-commerce technology from SmartTap.

Softcard chief executive officer, Michael Abbott, called the quick service restaurant “one of the world’s most iconic and innovative brands.” He added that the reach and scale of McDonald’s will help to broaden the awareness and use of mobile payments and will bring this type of transaction one step closer to being mainstream. It will also help to demonstrate the specific value offered by the Softcard smartphone based wallet app, said Abbott.

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.”