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MCX CEO Touts Loyalty Perks of CurrentC, Says There Are 'Consequences' for Breaking Exclusivity Terms

Wednesday November 5, 2014 1:54 pm PST by Juli Clover
currentc_phoneApple Pay competitor Merchant Customer Exchange or MCX, which is a group of retailers working on a QR-code based payment system called "CurrentC," has been in the spotlight in recent weeks after two prominent MCX members, Rite Aid and CVS, opted to remove Apple Pay support from their retail stores.

After a glut of negative press and a hacking incident, MCX executives have been scrambling to defend CurrentC, hosting a press conference and doing several interviews.

The latest information on MCX and CurrentC comes courtesy of The Verge, in an interview conducted with MCX CEO Dekkers Davidson.

According to Davidson, when it comes to security, CurrentC uses the same tokenization system Apple Pay is based on, replacing card numbers with random numbers. He also says that if customers want to be "totally anonymous" to retailers, "they'll get that."
We think Apple Pay, which has also embraced the concept of low value tokens as we did three years ago, we're probably in simpatico on that one. I pull out my phone, I hold up my phone with a QR code that says "I am a customer at lane 6", and now we're each sent a token and a message to the cloud that says "I am the seller" and "I am the buyer and I want to pay for this transaction with the payment instrument that I've selected in my phone." There's no piece of paper to sign, there's no print out, there's no signature to hand back. There are never credentials in my device at the point of sale, it all occurs in a secure server. So like with Apple, if anyone were to intercept the low value tokens there's nothing they could do with that.
One of the major draws of CurrentC that MCX executives have highlighted time and time again is its ability to incorporate loyalty cards and discounts, suggesting consumers want more than just a payment method. Davidson pointed out that the average American household is signed up for 18 loyalty programs but only uses a handful, with CurrentC making it "rewarding" and "hassle free" for customers to take advantage of loyalty programs. The CurrentC app offers automatic credits, points, and coupons, which are redeemed with each transaction.
This puts all the power in the hand of the consumer to make it simple, to make it rewarding and to make it hassle free. So for us, it's a lot more than about payments. Paying by mobile is a flat value proposition, it'll be cool for a while, but we hear from our merchants and they hear from their consumers that they want something that brings it all together, that's what we're doing.
On the subject of QR codes, Davidson says that CurrentC is "quite forgiving." Customers will not need to hold their phones "at a certain angle with certain light," and it's "designed to read a QR code pretty quickly." Davidson pointed towards Starbucks as a QR code success story, and said Starbucks is an "inspiration."

Davidson also commented on MCX's exclusivity agreements that have prompted stores like CVS and Rite Aid to stop accepting Apple Pay, while MCX member Meijer has continued to offer Apple's payment solution. "They have to make the decision that's best for their business," he said, but he went on to say that defying MCX's exclusivity agreements does have "consequences." Merchants who do not keep agreements will not see MCX "put a lot of energy in helping get [them] launched in the near term."

Davidson's full interview, which also includes details on why he thinks customers will use CurrentC, more of his thoughts on QR codes, and more information on the recent hacking attempt that saw customer email addresses compromised can be found over at The Verge.

Related Roundup: Apple Pay
[ 217 comments ]


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NachoGrande
62 months ago
The "consequences" are meaningless since they'll be out of business within a year. :rolleyes: no one will use this system.
Rating: 60 Votes
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Bare
62 months ago
What a joke. Deflect from the fact that you require direct access to bank accounts, and keep pushing the "security of the cloud!"

There is still NO REASON why these MCX retailers accepted Google Wallet and Apple Pay during their "exclusivity" and why they suddenly shut off their NFC terminals. Keep refusing Apple Pay, and we'll continue to shop elsewhere.
Rating: 55 Votes
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Oli20
62 months ago
The consequences for Meijer is that I now shop there for all my groceries, pharmacy needs, and general goods because of their support of Apple Pay. If there are other people like me I would say the consequences are worth it.
Rating: 42 Votes
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wxman2003
62 months ago
MCX will not help vendors set up CurrentC if they use NFC and violate their agreement. Sounds like a win win for the customer and the vendor.
Rating: 35 Votes
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brunozs
62 months ago
Stop trying to make CurrenC happen. It's not going to happen.
Rating: 35 Votes
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Kariya
62 months ago
What is this some kind of mafioso family?
Rating: 28 Votes
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josh995
62 months ago
I don't know if anyone else here has the same experience, my friends say they do, but I do use the Starbucks app to pay for my coffee when I go there, and the little reader they have sitting on the counter facing the customers scans the barcode on the phone screen. It NEVER immediately recognizes the code, it always takes a few seconds of me passing the phone over it at different angles. It is nowhere near as flawless as Apple Pay.

Same thing with the Best Buy app. I have my rewards info in there and when I have a certificate I want to use, they always try and scan the screen and sometimes it works, but takes them several tries, and sometimes it doesn't work at all and they have to enter it manually.
Rating: 24 Votes
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ApplePhy
62 months ago

What a joke. Deflect from the fact that you require direct access to bank accounts, and keep pushing the "security of the cloud!"

There is still NO REASON why these MCX retailers accepted Google Wallet and Apple Pay during their "exclusivity" and why they suddenly shut off their NFC terminals. Keep refusing Apple Pay, and we'll continue to shop elsewhere.


BINGO.

CEO keeps touting the fact that this is 3 years in the making.

Which means during the past 3 years NFC payments worked concurrently (mostly Google wallet) despite these merchants having signed exclusivity agreements.

Why then shut it off so precariously immediately after ApplePay launches, this banning it AND Google Wallet?

It's this precise action that is tarnishing the image of MCX. Leaves a bad taste in consumers mouths.

(Doesn't help also that FAR TOO MANY of these MCX merchants have been hacked recently, including MCX itself just last week)
Rating: 22 Votes
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thmshale
62 months ago
Still not interested :rolleyes:
Rating: 22 Votes
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jomo25
62 months ago

Starbucks as a QR code success story, and said Starbucks is an "inspiration."

Because QR codes were the only game in town. Til now. Someone has create much improved product. And the only way this QR code method will catch on is if you forcibly take away the other options. Thus the exclusivity clause.

Newspapers sold very well and were an inspiration to distributing news and information. Til the Internet came along.
Rating: 21 Votes

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