MCX Says Merchants Doing What's Best for Customers, Being Attacked for 'Challenging the Status Quo'

currentc_phoneFollowing the publication of a blog post earlier today outlining some details of its upcoming CurrentC mobile payments solution and disclosure of a hack resulting in unauthorized access to users' email addresses, Merchant Customer Exchange (MCX) held a conference call with members of the press to further address questions and concerns.

During the call, MCX CEO Dekkers Davidson and COO Scott Rankin clarified that MCX merchants who choose to accept Apple Pay are not subject to fines. As stated in the blog post earlier today, merchants are also free to leave the consortium entirely at any time without penalty beyond forfeiting the time and money already invested in the effort.

As a result, MCX certainly appears to be placing the blame for its member retailers' refusal to accept Apple Pay on the merchants themselves. Asked whether Apple Pay and MCX's CurrentC solution should be able to exist side-by-side, the executives noted that believe they will in the future and that it will take two or three major players in mobile payments to allow the entire market to thrive.

But pressed as to why some retailers such as CVS and Rite Aid have shut down NFC entirely rather than allow unofficial Apple Pay payments in their stores, Davidson argued that merchants know their customers best and are making the choices they believe are right for their customers. He said the merchants believe customers want more than just mobile payments, and CurrentC's integration of payments with loyalty cards and coupons will in his opinion prove to be the best solution.

On the topic of the hack that has resulted in compromised email addresses, Davidson noted that attacks on their systems were expected and have been heavy over the past week but that the email breach did not affect the app or the actual CurrentC systems. As a result, the issue has not shaken MCX's confidence that the cloud is the best place to store personal information for CurrentC users. Asked why MCX has been the target of such attacks over the past week, Davidson speculated that with MCX "challenging the status quo" of large, entrenched payment systems, there are bound to be attacks.

Addressing privacy issues, Davidson and Rankin also highlighted the privacy dashboard that will be available to all CurrentC users. The dashboard will allow users to tailor their level of engagement with retailers, ranging from complete anonymity to identifiable relationships that will allow for customized offers, coupons, and other benefits.

The executives also touted CurrentC's technology and payment platform agnosticism, noting that while the system has been initially built out using QR codes for maximum compatibility, the system can easily pivot to NFC or other technologies as appropriate. Responding to questions of security with QR codes, the executives pointed to Starbucks, which processes 5-6 million transactions per week using the technology.

On the payment front, CurrentC will support a variety of methods including store cards, gift cards, debit cards, and checking account withdrawals, with two credit card companies even on board at this stage. Over time, MCX expects all cards to be welcomed, even with the interchange fees charged for credit card usage.

CurrentC is currently in limited testing with an undisclosed number of partners in undisclosed locations around the country, and a full nationwide launch is planned for early next year.

Update October 30 7:26 AM: Following continued unclear answers and dodging from MCX executives, an MCX spokesperson has confirmed to Business Insider has confirmed that consortium members who choose to accept Apple Pay must indeed leave the CurrentC group. During yesterday's conference call, the executives refused to share whether any retailers have left the group or are considering doing so.

Top Rated Comments

farewelwilliams Avatar
99 months ago
in the small 0.00000001% chance that MCX does become successful, I vow to never, ever use CurrentC, even if it means I'll have to pay via dollar bills, just to screw with them.
Score: 81 Votes (Like | Disagree)
AdonisSMU Avatar
99 months ago
Really, Status Quo? QR Codes were the status quo like 10 years ago. We've moved on since then. This is so MCX can make consumer data trafficking a lot easier.

MCX is the gift that keeps on giving.
Score: 81 Votes (Like | Disagree)
burnside Avatar
99 months ago
Davidson argued that merchants know their customers best and are making the choices they believe are right for their customers.

Such as handing over your social security number.
Score: 67 Votes (Like | Disagree)
Codyak Avatar
99 months ago
The more I read about this whole situation and product, the more I'm convinced it's all a continuous series by the Onion.
Score: 59 Votes (Like | Disagree)
Dimwhit Avatar
99 months ago
But pressed as to why some retailers such as CVS and Rite Aid have shut down NFC entirely rather than allow unofficial Apple Pay payments in their stores, Davidson argued that merchants know their customers best and are making the choices they believe are right for their customers. He said the merchants believe customers want more than just mobile payments, and CurrentC's integration of payments with loyalty cards and coupons will in his opinion prove to be the best solution.

That paragraph makes NO sense. If CurrentC was already in place, maybe…but how does denying Google Wallet and ApplePay, with no alternative, showing they are making choices that are right for their customers???
Score: 55 Votes (Like | Disagree)
Swift Avatar
99 months ago
Notice one thing

Every single statement here is a lie. Oh, sorry, PR.

Using Apple Pay, effectively, just means using NFC, which is a standard.

MCX is clunky and abusive of people's privacy.

"We're the rebels against the status quo?" HAHAHAHAHA.
Score: 52 Votes (Like | Disagree)

Popular Stories

iPhone 13 Always On Feature

iPhone 14 Pro Screen Refresh Rate Upgrade Could Allow for Always-On Display

Tuesday May 24, 2022 7:23 am PDT by
Last year's iPhone 13 Pro models were the first of Apple's smartphones to come with 120Hz ProMotion displays, and while the two iPhone 14 Pro models will continue to feature the technology, their screens could well boast expanded refresh rate variability this time round. To bring ProMotion displays to the ‌iPhone 13 Pro models‌, Apple adopted LTPO panel technology with variable refresh...
iPhone 14 Pro Purple Front and Back MacRumors Exclusive

iPhone 14 Pro Renders Highlight Multiple Design Changes

Wednesday May 25, 2022 8:56 am PDT by
Leaker Jon Prosser today shared ostensibly accurate renders of the iPhone 14 Pro, providing the most accurate look yet at what the device could look like when it launches later this year. In the latest video on YouTube channel Front Page Tech, Prosser revealed renders of the iPhone 14 Pro made by Apple concept graphic designer Ian Zelbo, highlighting a range of specific design changes...
iPhone 14 Purple Lineup Feature

Will the iPhone 14 Be a Disappointment?

Saturday May 21, 2022 9:00 am PDT by
With around four months to go before Apple is expected to unveil the iPhone 14 lineup, the overwhelming majority of rumors related to the new devices so far have focused on the iPhone 14 Pro, rather than the standard iPhone 14 – leading to questions about how different the iPhone 14 will actually be from its predecessor, the iPhone 13. The iPhone 14 Pro and iPhone 14 Pro Max are expected...
iPhone 13 Face ID

'High-End' iPhone 14 Front-Facing Camera to Cost Apple Three Times More

Monday May 23, 2022 7:05 am PDT by
The iPhone 14 will feature a more expensive "high-end" front-facing camera with autofocus, partly made in South Korea for the first time, ET News reports. Apple reportedly ousted a Chinese candidate to choose LG Innotek, a South Korean company, to supply the iPhone 14's front-facing camera alongside Japan's Sharp. The company is said to have originally planned to switch to LG for the iPhone...
apple wwdc 2022

Apple Shares WWDC 2022 Schedule, Keynote to Take Place June 6 at 10:00 a.m PT

Tuesday May 24, 2022 9:06 am PDT by
Apple today confirmed that the keynote event for the Worldwide Developers Conference will begin at 10:00 a.m. Pacific Time on June 6, the first day of WWDC. The keynote will be an online-only event, though a select number of developers have been invited to the Apple Park campus for a viewing event. In addition to confirming the keynote date and time, Apple has shared the full WWDC 2022...
2022 Apple Watch Pride Edition Bands

Apple Announces 2022 Pride Edition Watch Bands and Watch Face

Tuesday May 24, 2022 6:24 am PDT by
Apple today announced new Pride bands for the Apple Watch, with new Pride Edition Sport Loop and Pride Edition Nike Sport Loop options available. The new Pride Edition bands are available to order today for $49 on Apple.com and in the Apple Store app, and will be available at Apple Store locations starting May 26. The Pride Edition Nike Sport Loop is also coming soon to Nike.com. This...