MCX Confirms Retailer Exclusivity for CurrentC Mobile Payments, but No Fines for Leaving Consortium

Much of the Apple news in recent days has centered around Apple Pay and what Tim Cook referred to on Monday as a "skirmish" in which several retailers backing a competing mobile payments initiative known as CurrentC have shut down NFC payment functionality in their stores to prevent customer use of Apple Pay, Google Wallet, and other similar services.

Numerous sources have indicated that retailers backing CurrentC are contractually prohibited from accepting alternative forms of mobile payments, and sources told The New York Times that retailers breaking those contracts would "face steep fines."

currentchowto
Merchant Customer Exchange (MCX), the consortium of retailers backing CurrentC, has now published a blog post confirming that retailers working with MCX are indeed required to back CurrentC exclusively. While the group does not directly address whether consortium members could be fined for accepting Apple Pay, it does say members may leave the group without penalty if they so choose.

MCX merchants make their own decisions about what solutions they want to bring to their customers; the choice is theirs. When merchants choose to work with MCX, they choose to do so exclusively and we’re proud of the long list of merchants who have partnered with us. Importantly, if a merchant decides to stop working with MCX, there are no fines.

While the lack of a fine for leaving the consortium means retailers such as CVS and Rite Aid could still pull out of the CurrentC effort and begin accepting Apple Pay, retailers are undoubtedly reluctant to do so as they view CurrentC has a key effort to escape from credit card swipe fees while maintaining the ability to mine customer information. Many have also already invested significant amounts of money in the CurrentC effort, money that would be lost if they stopped working with MCX.

Beyond its arrangements with retailers, MCX also addresses the features of CurrentC in its blog post, highlighting the fact that it will work with any phone, integrate coupons and loyalty cards, support multiple forms of payment including gift cards, credit cards, and checking withdrawals.

Addressing user privacy, MCX highlights CurrentC's privacy dashboard that will allow customers to control what information is shared with retailers and argues that the system's cloud-based storage of sensitive customer information offers more security than on-device storage that could be more easily compromised through hacking or theft.

MCX's CurrentC program is currently in limited testing, and is expected to launch nationwide sometime next year.

Related Roundup: Apple Pay

Top Rated Comments

Tyrannosaurs Avatar
123 months ago
"MCX highlights CurrentC's privacy dashboard that will allow customers to control what information is shared with retailers and argues that the system's cloud-based storage of sensitive customer information offers more security than on-device storage that could be more easily compromised through hacking or theft."

Yep, because no-one has ever hacked into a cloud solution and engaged in the wholesale theft of user data. It's far more efficient to hack in to one Smartphone at a time.

*shakes head*
Score: 52 Votes (Like | Disagree)
tattooedyuppie Avatar
123 months ago
Exec 1: "Should we keep this useless method or switch to the one where potentially millions of people can use it?"

Exec 2: "Yeah, let's do it the dumb way."
Score: 25 Votes (Like | Disagree)
mdelrossi Avatar
123 months ago
Let the exodus begin!
Score: 24 Votes (Like | Disagree)
Elbon Avatar
123 months ago
"retailers...view CurrentC has a key effort to escape from credit card swipe fees"

Here's the thing. I'm probably never going to use CurrentC. It sounds clunky and slow. That means that I'm going to continue to use my credit card, and these retailers are going to continue to pay the swipe fees. So from that perspective, CurrentC is basically a dead end.
Score: 21 Votes (Like | Disagree)
ipader Avatar
123 months ago
No fines or penalties, but probably no refunds on their $500,000 investment.

My "on-device storage" is more secure than their cloud.

Has anyone here participated in the private tests of CurrentC in MN or used their app? Is there any public feedback on tests from the merchants or consumers?
Score: 20 Votes (Like | Disagree)
penajmz Avatar
123 months ago
Interesting. At the end of the day, all those retailers will accept Apple Pay at some point. Probably when they realize customers won't want to use QR codes and cloud based storage of such sensitive information.
Score: 20 Votes (Like | Disagree)

Popular Stories

iPhone 16 Camera Lozenge 2 Perspective Gray

Five Key Upgrades Coming to iPhone 16

Friday March 15, 2024 1:45 pm PDT by
The iPhone is Apple's top-selling product, and it gets an update every year. In 2024, we're expecting the iPhone 16 and iPhone 16 Pro lineup, with an arguably more interesting feature set than we got with the iPhone 15 and iPhone 15 Pro. Subscribe to the MacRumors YouTube channel for more videos. Capture Button All four iPhone 16 models are set to get a whole new button, which will be...
When To Expect New iPads Feature 1

Apple to Announce New iPads on March 26, Rumors Claim

Monday March 18, 2024 4:02 am PDT by
Apple is widely expected to release new iPad Air and OLED iPad Pro models in the next few weeks. According to new rumors coming out of Asia, the company will announce its new iPads on Tuesday, March 26. Chinese leaker Instant Digital on Weibo this morning 日发布%23">claimed that the date will see some sort of announcement from Apple related to new iPads, but stopped short of calling it an...
airpods 3 orange

Two New AirPods 4 Models Expected to Launch in September or October

Sunday March 17, 2024 7:56 am PDT by
Apple suppliers will begin production of two new fourth-generation AirPods models in May, according to Bloomberg's Mark Gurman. Based on this production timeframe, he expects the headphones to be released in September or October. Gurman expects both fourth-generation AirPods models to feature a new design with better fit, improved sound quality, and an updated charging case with a USB-C...
iphone se 4 modified flag edges

iPhone SE 4 Expected to Depreciate Heavily

Tuesday March 12, 2024 9:04 am PDT by
Resale value trends suggest the iPhone SE 4 may not hold its value as well as Apple's flagship models, according to SellCell. According to the report, Apple's iPhone SE models have historically depreciated much more rapidly than the company's more premium offerings. The third-generation iPhone SE, which launched in March 2022, experienced a significant drop in resale value, losing 42.6%...
iOS 17 Passkey With Apple ACCOUNT Feature

'Apple ID' Expected to Change to 'Apple Account' Starting With iOS 18

Sunday March 17, 2024 7:13 am PDT by
MacRumors was first to report that Apple was planning to rebrand "Apple ID" to "Apple Account" across its software platforms and websites like iCloud.com as early as this year, and now Bloomberg's Mark Gurman has corroborated this change. A mockup of the new Apple Account branding In his Power On newsletter today, Gurman said the new "Apple Account" branding will start to be used later this...
General iOS 17 Feature Orange Purple

iOS 17.4.1 Update for iPhone is Imminent

Monday March 18, 2024 5:27 am PDT by
iOS 17.4.1 and iPadOS 17.4.1 should be released within the next few days, with a build number of 21E235, according to a source with a proven track record. MacRumors previously reported that Apple was internally testing iOS 17.4.1. As a minor update for the iPhone, it will likely address software bugs and/or security vulnerabilities. It is unclear if the update will include any other changes. ...
M3 iPad Feature 3

New iPads Likely to Begin Shipping in April

Monday March 18, 2024 9:52 am PDT by
Apple's new iPad Pro models with OLED displays will likely begin shipping to customers in April, according to information shared today by Ross Young, CEO of display industry research firm Display Supply Chain Consultants. Bloomberg's Mark Gurman also said the new iPad Pro models might not ship until "deeper" into April in his Power On newsletter on Sunday:I've repeatedly said that new...