MCX sells one-time Apple Pay challenger CurrentC to JPMorgan Chase

Posted:
in iPhone edited March 2017
JPMorgan Chase on Friday said it has reached an agreement with the Merchant Customer Exchange to buy the consortium's financial technology assets -- the defunct CurrentC mobile payments platform -- as the bank works to build out its own Chase Pay solution.




The announcement from JPMorgan Chase comes nine months after MCX officially shut down CurrentC operations following a brief beta period last June.

Though JPMorgan Chase fails to mention the CurrentC brand name, instead referencing MCX "FinTech" payments technology, the failed platform is thought to be at the heart of the sale. The bank partnered with MCX to integrate CurrentC assets at the core of its Chase Pay app in 2015, and today's purchase is an extension of that effort.

For JPMorgan Chase, the buy nets MCX consortium members like Walmart, Shell and Phillips 76, whose payment backends were already tied to the service, and thereby Chase Pay.

Chase executives said they opted to purchase the FinTech assets in lieu of building separate parallel technology to serve non-MCX members, suggesting the forthcoming integration will expand the system beyond consortium companies.

"MCX has been an important partner, and their technology complements ours, so we're thrilled to deepen our relationships with the merchant community through the purchase of this technology," said Jennifer Roberts, head of Chase Pay. "This will help us get to market faster."

In development since 2012, CurrentC was designed to link directly with customer bank accounts, allowing partner retailers like Walmart to skirt credit card network fees. MCX later attempted to corner the market by restricting consortium member from accepting other NFC payment platforms including Apple Pay, which launched in late 2014.

Customers first complained of the embargo shortly after Apple Pay debuted, noting MCX members CVS and Rite Aid opted to deactivate their NFC point of sale terminals rather than accept Apple's service. MCX responded to criticism of the lockout days later, saying exclusivity would end in "months, not years."

Despite early attempts at getting CurrentC up and running, ongoing troubles and industry pressure prompted Rite Aid and Best Buy to break rank and begin accepting Apple Pay payments in 2015. Walmart, a major MCX partner, followed and launched its own branded solution last year.

Despite years of setbacks, and lackluster adoption rates seen during its brief test period, MCX is spinning the sale to JPMorgan Chase as a win for its payments initiative.

"Consistent with our mission to provide secure, consumer friendly, and cost effective mobile payment solutions to the marketplace, MCX took advantage of this opportunity to have the solution expanded to the broader merchant community", said MCX CEO Brian Mooney.
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Comments

  • Reply 1 of 52
    cornchipcornchip Posts: 1,835member
    And 'round the bowl it circles…

     🚽 💩 
    edited March 2017 Rayz2016watto_cobramagman1979calimacseekerrepressthissupadav03GeorgeBMaczroger73macxpress
  • Reply 2 of 52
    SpamSandwichSpamSandwich Posts: 33,408member
    If they paid more than one dollar they paid too much.
    watto_cobramagman1979calirepressthislarrya
  • Reply 3 of 52
    chasmchasm Posts: 2,339member
    I hope they didn't pay more than, like, $250 for it, because that is literally all it is worth, if even that. The Current-C technology was overly complicated, never tested in the real world on a large scale, and compromised customer information *like crazy.* Using any part of this for a system that only one (admittedly large) bank's customers can use is going to flop so hard. Hint for JPMorganChase: if *Walmart* couldn't make their variation of this system popular, you can't either. Those Current-C creeps (who lied like dogs throughout their entire fiasco) must be laughing their heads off.
    watto_cobramagman1979calirepressthissupadav03digital_guy
  • Reply 4 of 52
    Lol. Deducted this back when Apple Pay was being blocked in favor of whenever current-c would get its act together. If the mcx actually cared about security, convenience, and ease of use like they say, they'd simply throw full support behind Apple Pay. 

    The only solution that that actually protects the consumer instead of tracks the consumer. 
    caliGeorgeBMaclostkiwiwatto_cobrabaconstang
  • Reply 5 of 52
    cornchip said:
    And 'round the bowl it circles…

     🚽 💩 
    Lol

    perfect analogy. 
    caliwatto_cobracornchip
  • Reply 6 of 52
    SoliSoli Posts: 10,029member
    ...

    magman1979
  • Reply 7 of 52
    RIP MCX CurrentC LOL
    watto_cobra
  • Reply 8 of 52
    calicali Posts: 3,494member
    "Chase Pay"

    this is getting ridiculous. 


    edited March 2017 coolfactorpscooter63brakkenStrangeDaysdigital_guywatto_cobramagman1979baconstang
  • Reply 9 of 52
    coolfactorcoolfactor Posts: 1,795member
    This whole thing has been very entertaining — to watch how out of touch they executives have been.
    StrangeDayslostkiwiwatto_cobrachia
  • Reply 10 of 52
    SoliSoli Posts: 10,029member
    cali said:
    "Chase Pay"

    this is getting ridiculous. 
    I'm fine with that, so long as they all follow suit with the same backend system popularized by Apple Pay, I'm perfectly happy with Android Pay, Samsung Pay, Chase Pay, Swatch Pay, Whitey Will Pay, etc.

    My only concern is that we can eventually move from having to still carry our physical cards with us when a referential card number can used with a digital token to help protect us from potential theft.
    edited March 2017 watto_cobra
  • Reply 11 of 52
    calicali Posts: 3,494member
    Soli said:
    cali said:
    "Chase Pay"

    this is getting ridiculous. 
    I'm fine with that, so long as they all follow suit with the same backend system popularized by Apple Pay, I'm perfectly happy with Android Pay, Samsung Pay, Chase Pay, Swatch Pay, Whitey Will Pay, etc.

    My only concern is that we can eventually move from having to still carry our physical cards with us when a referential card number can used with a digital token to help protect us from potential theft.
    McDonalds Pay
    Microsoft Pay
    Pepsi Pay
    FaceBook Pay
    Wal Mart Pay(oops!)
    NFL Pay

    I hope it stops. Imagine if they make us have separate apps for them all? Then it's the cluttered wallet all over again. 
    digital_guywatto_cobrabaconstang
  • Reply 12 of 52
    SoliSoli Posts: 10,029member
    cali said:
    Soli said:
    cali said:
    "Chase Pay"

    this is getting ridiculous. 
    I'm fine with that, so long as they all follow suit with the same backend system popularized by Apple Pay, I'm perfectly happy with Android Pay, Samsung Pay, Chase Pay, Swatch Pay, Whitey Will Pay, etc.

    My only concern is that we can eventually move from having to still carry our physical cards with us when a referential card number can used with a digital token to help protect us from potential theft.
    McDonalds Pay
    Microsoft Pay
    Pepsi Pay
    FaceBook Pay
    Wal Mart Pay(oops!)
    NFL Pay

    I hope it stops. Imagine if they make us have separate apps for them all? Then it's the cluttered wallet all over again. 
    I don't understand how you think there will be a McDonald's Pay, Pepsi Pay, etc. The systems already established are for devices, like an Apple device, that uses their SW and HW setup to connect into a financial institution's universal backend design, hence Apple Pay. But not everything is going to run off an Apple device, which then severely limits not only general use, but also makes it less safe for Apple Pay users because they will still have to carry physical cards more often because of the article limitation you suggest.

    I know Tag Heuer unveiled a watch that runs Android Wear so I assume that it will use Android Pay if it contains NFC and other necessary HW, but what about Swatch Group? It looks like the Swatch Bellamy will use a homegrown SW design so why should someone who buys a modernized Swatch Group watch from one of their many brands to include the benefits of a secure, NFC-based payment system on-board? It surely won't be a Apple Pay so what is so wrong with there being Swatch Pay that would allow this functionality? The same for Fitbit and other wrist-worn wearables.
  • Reply 13 of 52
    Chase: if you drop support for ApplePay, when you rollout ChasePay, I will drop you as my provider of 2 credit cards.
    tgr1GeorgeBMacSolilostkiwiwatto_cobracornchiplollivermagman1979badmonk
  • Reply 14 of 52
    davendaven Posts: 617member
    This whole thing has been very entertaining — to watch how out of touch they executives have been.
    And yet these same executives continue to vote themselves huge pay increases for a job well done. 😳
    lostkiwiwatto_cobrachia
  • Reply 15 of 52
    wood1208wood1208 Posts: 2,504member
    Someday we will move to block-chain paperless currency.
  • Reply 16 of 52
    StrangeDaysStrangeDays Posts: 11,152member
    CVS still has AP explicitly disabled at their NFC terminals (I believe other NFC options work. Banana Republic was the same way last time I tried it). i've emailed CVS about it but never got a response. 

    (I go to walgreens now too)
    edited March 2017 GeorgeBMacpscooter63mobirdai46lostkiwiwatto_cobra
  • Reply 17 of 52
    GeorgeBMacGeorgeBMac Posts: 9,223member
    cali said:
    Soli said:
    cali said:
    "Chase Pay"

    this is getting ridiculous. 
    I'm fine with that, so long as they all follow suit with the same backend system popularized by Apple Pay, I'm perfectly happy with Android Pay, Samsung Pay, Chase Pay, Swatch Pay, Whitey Will Pay, etc.

    My only concern is that we can eventually move from having to still carry our physical cards with us when a referential card number can used with a digital token to help protect us from potential theft.
    McDonalds Pay
    Microsoft Pay
    Pepsi Pay
    FaceBook Pay
    Wal Mart Pay(oops!)
    NFL Pay

    I hope it stops. Imagine if they make us have separate apps for them all? Then it's the cluttered wallet all over again. 
    That's simple:   When CVS refused to accept ApplePay, I switched to Walgreens.   When my local grocery store refused to accept Apple Pay I switched to TraderJoes.   Aside from the convenience, accepting ApplePay demonstrates the store values its customers and their privacy  -- So, as a customer, I value that store.   But, now that I have an AppleWatch, the convenience is terrific too -- I don't have to reach for anything.
    Solilostkiwiwatto_cobrabaconstang
  • Reply 18 of 52
    ksecksec Posts: 1,567member
    cali said:
    Soli said:
    cali said:
    "Chase Pay"

    this is getting ridiculous. 
    I'm fine with that, so long as they all follow suit with the same backend system popularized by Apple Pay, I'm perfectly happy with Android Pay, Samsung Pay, Chase Pay, Swatch Pay, Whitey Will Pay, etc.

    My only concern is that we can eventually move from having to still carry our physical cards with us when a referential card number can used with a digital token to help protect us from potential theft.
    McDonalds Pay
    Microsoft Pay
    Pepsi Pay
    FaceBook Pay
    Wal Mart Pay(oops!)
    NFL Pay

    I hope it stops. Imagine if they make us have separate apps for them all? Then it's the cluttered wallet all over again. 
     When you consider, Apple 's user group are likely to be spending more, blocking them out is literally the worst decision ever. And since Apple doesn't allow ANY other payment method using NFC. There is nothing they could do. 

    They could copy China's WePay using QR Code. One way to get around NFC restriction. 

    I am not sure if they wanted the customer shopping info or they really wanted to be in the payment system sector. For the 2nd they will properly never succeed. For the first I wonder if they have their own Co-Brand credit Card and get those info from there. Which will still work with Apple Pay. 
    watto_cobrachia
  • Reply 19 of 52
    lkrupplkrupp Posts: 8,994member

    Despite years of setbacks, and lackluster adoption rates seen during its brief test period, MCX is spinning the sale to JPMorgan Chase as a win for its payments initiative.

    "Consistent with our mission to provide secure, consumer friendly, and cost effective mobile payment solutions to the marketplace, MCX took advantage of this opportunity to have the solution expanded to the broader merchant community", said MCX CEO Brian Mooney.
    Except MCX doesn’t have a RDF like Steve did.
  • Reply 20 of 52
    SoliSoli Posts: 10,029member
    Chase: if you drop support for ApplePay, when you rollout ChasePay, I will drop you as my provider of 2 credit cards.
    I doubt they will, but if they do I'll be following suit (where possible).
    ai46lostkiwiwatto_cobrarobertwalterGeorgeBMacbadmonk
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