I'm reconsidering my initial resistance to CurrentC. Maybe it will be worth my while to stick it to the banks and their high fees.
Apple Pay
- Thread starter Ilya
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It's merchant centric rather than consumer centric. From what I've read, you give up a ton of data to merchants when you use it.
Here are my concerns about MCX's CurrentC:
1. Exclusivity. MCX seems to be pushing exclusivity instead of coexisting with other forms of contactless payments and allowing customers to decide what they prefer. On the MCX web site it is stated: "When merchants choose to work with MCX, they choose to do so exclusively" and it still remains to be seen what will happen with rebels like Meijer who refuse to disable Apple Pay. So far, with very few exceptions, MCX members are refusing to accept Apple Pay even though they haven't even rolled out the CurrentC payment system yet.
2. Privacy. With Apple Pay merchants get almost no information about you, not even your name. With CurrentC merchants get access to your personal information and more importantly they get to track your purchase history, which they probably love even more than the savings on credit card transactions.
3. Security. Both systems are much more secure than regular credit cards, but personally I prefer the use of a fingerprint reader and the tokens generated in the hardware within my phone, rather than somewhere in the Cloud.
4. Convenience. With CurrentC I will be required to open an app and to use the data connection, to scan a barcode and then to have another barcode scanned by the cashier. With Apple Pay all I need to do is to put my finger on the Home button. No need to open any apps, to scan any barcodes or even to be on-line.
5. Flexibility. With Apple Pay I can enroll most of my existing credit or debit cards and I get to choose which card to use for each specific payment: for some transactions I may prefer one card over the other. For business purchases I would want to use a corporate card, etc. With CurrentC I don't have that flexibility and I may have to preload funds to my CurrentC account.
Again, personally I would have nothing against CurrentC if it was offered as one of the options alongside with Apple Pay and Google Wallet, etc. Give your customers a choice, let them decide what they like. Don't make it an executive decision!
And for full disclosure: I do not own any Apple stock! At least not yet!
Ilya
1. Exclusivity. MCX seems to be pushing exclusivity instead of coexisting with other forms of contactless payments and allowing customers to decide what they prefer. On the MCX web site it is stated: "When merchants choose to work with MCX, they choose to do so exclusively" and it still remains to be seen what will happen with rebels like Meijer who refuse to disable Apple Pay. So far, with very few exceptions, MCX members are refusing to accept Apple Pay even though they haven't even rolled out the CurrentC payment system yet.
2. Privacy. With Apple Pay merchants get almost no information about you, not even your name. With CurrentC merchants get access to your personal information and more importantly they get to track your purchase history, which they probably love even more than the savings on credit card transactions.
3. Security. Both systems are much more secure than regular credit cards, but personally I prefer the use of a fingerprint reader and the tokens generated in the hardware within my phone, rather than somewhere in the Cloud.
4. Convenience. With CurrentC I will be required to open an app and to use the data connection, to scan a barcode and then to have another barcode scanned by the cashier. With Apple Pay all I need to do is to put my finger on the Home button. No need to open any apps, to scan any barcodes or even to be on-line.
5. Flexibility. With Apple Pay I can enroll most of my existing credit or debit cards and I get to choose which card to use for each specific payment: for some transactions I may prefer one card over the other. For business purchases I would want to use a corporate card, etc. With CurrentC I don't have that flexibility and I may have to preload funds to my CurrentC account.
Again, personally I would have nothing against CurrentC if it was offered as one of the options alongside with Apple Pay and Google Wallet, etc. Give your customers a choice, let them decide what they like. Don't make it an executive decision!
And for full disclosure: I do not own any Apple stock! At least not yet!
Ilya
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By the way, here is a good up-to-date list of stores that accept Apple Pay, as well as the list of those that don't:
http://ios.wonderhowto.com/how-to/which-stores-accept-apple-pay-always-up-date-list-0158076/
http://ios.wonderhowto.com/how-to/which-stores-accept-apple-pay-always-up-date-list-0158076/
I absolutely LOVE how you can order something online without logging in or even having an account and not having to enter any shipping address, etc.. Fast.
There are 2 different issues here. One is NFC payments, the other is backend clearing. Apple pay is just another way to enter CC data (NFC instead of swipe), it makes it easier for the customer to pay with a credit card. The CurrentC is really after eliminating the CC fees by replacing your credit card with an ACH draft of you bank account. The conflict of course is that NFC based Apple Pay makes it even easier to use a CC, the opposite goal of CurrentC.
The merchants involved have a huge incentive to get CurrentC working - elimination of CC fees. So, they will likely keep pushing it.
They are after eliminating CC charges and also after customers' data and their purchase history, which they want to collect in exchange for some loyalty program perks.
Instead of fighting Apple Pay, I think MCX should embrace it! Sign an agreement with Apple and become one of the supported banks/payment networks, alternative to VISA/MC. Yes, they would have to pay 0.15% to Apple, but only for transactions made with the iPhone. That's nothing compared to 2-3% that credit cards are currently charging on EVERY CC transaction, and it would guarantee their success, would immediately bring new users and new member companies too, and will eliminate the bad publicity. I think that could be a good compromise.
My prediction is that the end of this War will not be a total victory of one side over the other, but some compromise, an agreement reached between Apple and the MCX member companies. There is some common ground here that would make everyone happy.
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Agreed! I recall when CC first came out there was a similar battle and finally, we saw all merchants displaying the MC VISA AMEX Discover and many Diners Club decals. When Walmart caves, and adds Apple Pay, everyone else will follow. Apple is way too big and won't go away because of one retailer. A bigger question is how it will fare on a world wide scale.
A quick update. A nearby Radio Shack is not equipped for Apple Pay. The closest Walgreens seems to have the equipment in place and it does display the Apple Pay logo, but the cashier couldn't make it work. Yesterday I have purchased a "free" data plan for my iPad at T-Mobile and paid with Apple Pay. The pay terminal has accepted my payment without problems, but still required a signature - kind of defeats the purpose. So far this has been a hit-and-miss: some stores accept Apple Pay just fine, others don't. I'll keep trying.
One of the people I work with has a 2nd job at Old Navy. She said they have added the ApplePay logo on their Sales Terminals. I searched and I don't see any official comment regarding this from Old Navy or Apple. Maybe it's just a clever ploy to get me into the Old Navy store…
One of the people I work with has a 2nd job at Old Navy. She said they have added the ApplePay logo on their Sales Terminals. I searched and I don't see any official comment regarding this from Old Navy or Apple. Maybe it's just a clever ploy to get me into the Old Navy store…
That is interesting! Old Navy is a CurrentC/MCX alliance member. Sounds like we may have another MCX defector!
With how clever has hackers as gotten I will not trust putting any of my credit card info into any type of automated payment system.
Then your only other option is to pay cash!
Everything else involves an automated payment system and potentially can be hacked, with traditional credit and debit cards being the easiest target.
yeah but putting your info into a device that will transmit that information when triggered by a wireless device screw that.Then your only other option is to pay cash!
Everything else involves an automated payment system and potentially can be hacked, with traditional credit and debit cards being the easiest target.
rfid technology is great for certain uses but I am not going to trust it with my financial information.
I think you are missing the point. With Apple Pay your credit card number is not stored on the phone, it is not stored on the servers, it is not communicated during any payment transactions and most importantly, it is not disclosed to the merchant!
then explain to me where the credit card info is stored?
and apple pay is hackable after doing a google search.
http://www.washingtonpost.com/blogs/the-switch/wp/2014/09/10/so-you-want-to-hack-apple-pay/
That's the beauty of this technology: it is not stored at all!
Here is how I understand it. The credit card number is only used one time when you initially enroll in Apple Pay as a way of verifying that you are the owner of this device and you are the holder of the bank account. The enrollment process requires your fingerprint. Some banks (like American Express) require an extra step of verification: a phone call. Once your identity is confirmed, the bank will then associate some internal unique ID of the phone directly with your bank account. That device ID, as well as your fingerprint info is stored in a secure chip within the phone and cannot be accessed by any software, including the iOS itself! During payment transactions a unique one-time token is generated inside that chip based on your device ID (think one time Credit Card number) that only your bank can identify and associate with your account. It can only be used once for that single transaction that you authorized. If someone steals that number, they won't be able to do anything with it.
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Nothing is hacker-proof. But it's jut too easy for someone to steal the regular credit card. All the crooks would need is your CC number, which is disclosed with every transaction and is openly written on the card.
To me, Apple Pay looks like a much more secure mechanism compared to traditional CC payments. Time will tell of course!
To me, Apple Pay looks like a much more secure mechanism compared to traditional CC payments. Time will tell of course!
it is an improvement a big improvement.Nothing is hacker-proof. But it's jut too easy for someone to steal the regular credit card. All the crooks would need is your CC number, which is disclosed with every transaction and is openly written on the card.
To me, Apple Pay looks like a much more secure mechanism compared to traditional CC payments.
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