Popular grocery store chain Kroger has launched a new mobile payments service called Kroger Pay, which it will be using in lieu of Apple Pay.
According to a WCPO, a local Cincinnati news site, Kroger Pay launched in Columbus and Colorado today, but will be expanding to all Kroger stores by the end of the year.
Kroger Pay is QR-based, so to pay, users need to open up the app and generate a single-use QR code that's scanned at checkout when making a purchase.
Kroger customers can link any major debit or credit card to the Kroger Pay app, and it also includes a Kroger Rewards debit card for earning fuel points and other rewards with purchases.
"Kroger Pay is one of the few mobile wallets that pairs loyalty and payment," said Mary Ellen Adcock, group vice president of operations. "The application of this exciting technology is another step in our front-end experience transformation."
With Kroger embracing its own payment solution, it looks like the grocery store chain has no plans to introduce support for Apple Pay. Kroger did test support for Apple Pay in stores that support contactless payments, but reportedly discontinued the program "due to little interest by customers."
Kroger in 2018 told a Reddit user that it did not have plans to implement Apple Pay in any of its stores.
Kroger has been working on its payments service for more than two years, and has been accepting the Chase Pay digital wallet since 2017.
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Kroger in 2018 told a Reddit user ('https://www.reddit.com/r/ApplePay/comments/8cgu5t/kroger_and_apple_pay/') that it did not have plans to implement Apple Pay in any of its stores.
You don’t implement Apple Pay; Apple and the banks already implemented it. You simply allow Apple Pay to work, along with every other contactless payment method out there.
Starting in 2020, both Visa and MasterCard will require merchants accepting payments via their networks to support contactless payment at all Point-of-Sale terminals in almost every market in the United States. The fallout from that should be interesting, because there are still more than a few large-scale retailers like Kroger who insist on implementing their own payment schemes so they can continue to harvest your data.
For now, I’ll be shopping exclusively at Giant Eagle instead. This is exactly how Walgreens got my loyalty, too.
Also, if you saw “little interest from customers” with Apple Pay, why would you think they would want to pull out their phone, open the app, wait for it to load, click to open the QR Code, and then have it scan.... versus just tapping their iPhone or Watch? This just screams “we want your data how we want it, not the privacy focused Apple way.”
I'll give them another two years before they support Apple Pay, if not sooner if any type of data breach occurs due to their archaic QR based system.
Someone at Kroger should talk to someone at Target to find out why they suddenly are abandoning Target Wallet and starting to support all the major contactless payment systems ...
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