Apple Responds to Rite Aid/CVS Apple Pay Embargo

Apple Responds to Rite Aid/CVS Apple Pay Embargo

Following the decision by drugstore chains Rite Aid and CVS to disable Apple Pay support at its checkouts, Apple has finally commented on the situation, telling Business Insider they’ve received overwhelmingly positive feedback from customers and retailers who have used Apple Pay.

Apple Pay

Business Insider, via MacRumors:

The feedback we are getting from customers and retailers about Apple Pay is overwhelmingly positive and enthusiastic. We are working to get as many merchants as possible to support this convenient, secure and private payment option for consumers. Many retailers have already seen the benefits and are delighting their customers at over 220,000 locations.

CVS and Rite Aid, both members of Merchant Customer Exchange, or MCX, a consortium of retailers who are in the proces of developing their own payments system, CurrentC, to compete with Apple Pay and other systems.

MCX is composed of several different retail outlets and restaurants, including Walmart, Best Buy, Lowe’s, Old Navy, Southwest, Target, 7-Eleven, Dunkin Donuts, Hobby Lobby, and more.

CurrentC does not use NFC, instead using a QR code to be generated via a customer’s mobile device. While the system is beneficial to participating merchants, as it avoids credit and debit card fees, it is less beneficial for customers, as the system requires a social security number, a driver’s license number, and requires the customer to give CurrentC access to their checking account.

Walmart gave Business Insider a statement as to why it believes merchants are in the best position to create a mobile payments service for consumers:

“There are certainly a lot of compelling technologies being developed, which is great for the mobile-commerce industry as a whole. Ultimately, what matters is that consumers have a payment option that is widely accepted, secure and developed with their best interests in mind. MCX member merchants already collectively serve a majority of Americans every day. MCX’s members believe merchants are in the best position to provide a mobile solution because of their deep insights into their customers’ shopping and buying experiences.”

Android and iOS users on Reddit have allied to call for a boycott on all MCX partners. (Disabling NFC support to prevent Apple Pay purchases also disables Android-based payment solutions like Google Wallet.)

While some big names in retail have opted out of Apple Pay, an equally impressive list of retailers have signed on, including Macy’s, Chevron, Disney, McDonald’s, Nike, Petco, Whole Foods, and more. Apple Pay can also be used at almost any store that accepts NFC payments.