My one slight worry is that, their timeline (mid-2015) makes it more than likely they'll try and copy some of Apple's implementation of the payment system.
It'll be fine if they copy Apple Pay. By mid-2015, Apple Pay will be so far out of the gate, it won't even be a race anymore. I used it last night at Walgreens for the first time. It was ridiculously easy. In 6 months, everyone will be using this.
Obviously, the stupid part of this is the contract requiring merchants not to accept anything else. One would think a merchant would want to take as many forms of payment as they can, for the convenience of the customer.
Well, any merchant has to draw the line somewhere. Do they want umpteen payment scheme devices sitting on their counters? They already have NFC and card swipe terminals. It has been pointed out that the EMV mandate will require all terminals be compatible with the chip/pin method (which is NFC I believe). The CurrentC scheme will be D.O.A before it hits the ground.
Why the hell would any payment company need access to my health info?? No thanks. You can keep your MCX crap. I won't be patronizing any company that uses it.
Every swipe of your actual credit card appears as a notification on your phone (if set appropriately). This will help reduce fraud further by allowing detection of cloned credit cards. Also works with iTunes purchases. May do so with other online purchasing.
Tthat is far more secure than an exposed debit card or bank account. You have instant feedback.
Whatis interesting, is after I added an AMEX and a Capital One visa to Apple Pay, I started to get notifications for other authorizations on the Capital One and the AMEX on my phone. Something in the sign up process set that up. Which is pretty cool.
It'll be fine if they copy Apple Pay. By mid-2015, Apple Pay will be so far out of the gate, it won't even be a race anymore. I used it last night at Walgreens for the first time. It was ridiculously easy. In 6 months, everyone will be using this.
But they won't copy Apple Pay because they want to avoid the credit card companies, and to not pay the fee.
So they'll still require access to my bank account (via ACH or debit card). And I am not about to give them that. Or my SSN. Or my driver license info.
Doing NFC would be smart but that's nowhere near enough. Apple doesn't allow that (direct access to NFC) but probably will later on.
A[quote name="AppleInsider" url="/t/183116/mcx-defends-currentc-against-apple-pay-controversy-says-sensitive-customer-data-is-saved-in-the-cloud#post_2629541"]As Apple Pay and Google Wallet users have joined together in an attempt to fight a consortium of retailers that have blocked NFC-based payments, the company behind the CurrentC mobile payment program has come out in defense of itself, saying that members of the public are "misinformed."
MCX posted a new blog post on Wednesday entitled "Answers to Your Questions," in which CEO Dekkers Davidson promoted his company's forthcoming CurrentC mobile payment service. A number of major retailers are partners in the program, and the contract forbids them from using alternative mobile payment services like Apple Pay.
But while CurrentC is an exclusive program, retailers who wish to stop working with MCX do not pay any fines, Davidson said. He also touted "key benefits" of the system, such as cross-platform compatibility, and the ability to integrate coupons, loyalty cards and payment methods into one "seamless transaction."
Davidson also addressed concerns about consumer privacy and data security, particularly considering the service taps directly into users' bank accounts rather than using credit cards. The CEO said that MCX will not store sensitive customer data within the application, and will instead save it on a "secure cloud-hosted network."
"Removing this sensitive information from the mobile device significantly lowers the risk of it being inappropriately disclosed in a case that the mobile device is hacked, stolen or otherwise compromised," Davidson wrote.
As for collection of consumer data, the MCX chief executive said users will be able to "make informed decisions" about their personal data through a privacy dashboard in the CurrentC mobile application. CurrentC will also comply with privacy laws required by the Health Insurance Portability and Accountability Act, or HIPAA.
"CurrentC does not collect any information from any other apps, or health information stored in the mobile device," Davidson said. The CEO also included a link to the CurrentC privacy policy, but as of Wednesday morning the page was broken, returning a 404 error.
MCX has found itself under fire after merchant partners Rite Aid and CVS began declining Apple Pay and Google Wallet NFC-based transactions this past weekend. Other MCX partners, including Walmart and Best Buy, have already announced they will not support Apple Pay.
The CurrentC payment system from MCX is set to roll out in 2015, and it relies on unique QR codes that are presented upon checkout. Unlike Apple Pay, which allows users to simply place their iPhone within proximity of a compatible terminal and authorize the purchase with their fingerprint, CurrentC requires users to unlock their device, launch the application, and have a retail employee scan the QR code displayed on their device.
The consortium is looking to bypass credit card network fees by linking directly to customers' bank accounts, which has raised some security concerns amongst critics. Apple's system instead works with existing credit card providers, allowing users to continue to receive the same points, benefits and rewards when completing transactions via their iPhone.
In addition to avoiding swipe fees, CurrentC enables purchase tracking and processing for loyalty programs, coupons and special offers to further boost MCX merchant sales.
Apple Pay launched on the iPhone 6 and iPhone 6 Plus last week, and users activated more than one million cards in the first 72 hours of availability. That means within just three days, Apple Pay became the largest contactless payments service in the U.S., outpacing services like Google Wallet which have been on the market for years.[and CurrentC just announced their email addresses were hacked. How sweet that is!
Obviously, the stupid part of this is the contract requiring merchants not to accept anything else. One would think a merchant would want to take as many forms of payment as they can, for the convenience of the customer
.
Does that mean these merchants are no longer allowed to take cash too?
Many retailers currently offer store credit cards which are actually bank credit cards that are exclusive to that retailer. For example, the Home Depot card is actually a Chase MC. Other companies offer a branded CC such as American Airlines which is good anywhere in the world. I'd be surprised if AA is not getting some of the swipe fees. You'd think that after doing the math the MCX members would see the adverse side effects of alienating their customer base verses working with the banks to get some of the fees back by offering their own branded CC. I would predict a net loss for the system in its current form even if ?Pay didn't exist.
Someone mentioned in another thread that we should load up a shopping basket and then leave it at the check stand because they didn't accept ?Pay. Intentionally doing so would be quite offensive as all it would do is make some minimum wage worker go put all the merchandise back, but I see this happening unintentionally thousands of times a day across the country where people expect to pay with regular plastic CC and not being able to. Big inconvenience to both consumer and merchant.
Well, any merchant has to draw the line somewhere. Do they want umpteen payment scheme devices sitting on their counters? They already have NFC and card swipe terminals. It has been pointed out that the EMV mandate will require all terminals be compatible with the chip/pin method (which is NFC I believe).
No - EMV does not require NFC. Many merchants are including NFC in the new terminals they're getting but it is separate from chip+PIN or chip+signature.
In fact, NFC transactions such as PayPass/paywave are NOT "chip+PIN" transactions. If they're contactless then there's no PIN. That's why in Europe they're limited to $20 or so and you can't do more than about four without an actual put-in-the-chip-slot-and-enter-your-PIN transaction. You have to do it once every four or five times. This way a lost card can't continue to be used forever.
NEWS FLASH from CNBC! CurrentC just announced it has been hacked in the last 36 hours and that customer test data has been compromised. More to follow.
I thought you were joking, but it's the top line on CNBC right now. They claim only email addresses lost, but then spin it with this gem: "Many of these email addresses are dummy accounts used for testing purposes only."
I guess it could get worse for these clowns, but I'm enjoying the show so far!
Well, any merchant has to draw the line somewhere. Do they want umpteen payment scheme devices sitting on their counters? They already have NFC and card swipe terminals. It has been pointed out that the EMV mandate will require all terminals be compatible with the chip/pin method (which is NFC I believe). The CurrentC scheme will be D.O.A before it hits the ground.
Like you said, they already have NFC terminals. If they didn't have them, it wouldn't have been this cluster for them.
Direct access to my checking account without any benefits? HELL NO.
I use a debit card because I get massive benefits:
I charge about $150 on my debit card a month.
I can withdrawl cash at ANY ATM without a fee.
I get $1200 a year in rewards checking interest.
Without those benefits I would use my creditcards exclusively.
I pay for 99% of what I buy via my credit card, earning maybe $400/year in "cash back." I never saw the appeal of debit cards, but I also wasn't aware there was a way to get $100/month is rewards. What's the secret? (I assume it's not "keep $250,000 in your checking account earning 0.05% interest.")
Even if their cloud security protects personal info as well as they claim, the knock against MCX is that they collect and share that data to begin with. MCX comes across as anti-consumer because it inconveniences customers with QR codes and PIN numbers and requires direct access to their bank accounts. And for what? So that retailers can mine more information about their customers?
The privacy protections built into Apple Pay are a direct threat to the retailers' data collection efforts. It effectively walls off the retailers from linking transactions to individual customers. The customer has control over when they want to use a loyalty card or share any other information that might link a purchase to whatever profile the retailer might have on them. Otherwise, a purchase is just a purchase (kinda like how it is when paying with cash).
Target has the Red Card. I don't recall anyone bashing that reward program that gives you 5% off your purchase. That card is linked to your checking account.
How many of you would like to pay a 2% or 3% royalty every time you sold a product in your store? How many of you would like to pay no royalty every time you sold a product in your store? If a company can give you a payment system, where they don't have to pay another company a royalty fee, then that is the ideal method for them.
Comments
LOL. The 'cloud'? Blithering fools.
My one slight worry is that, their timeline (mid-2015) makes it more than likely they'll try and copy some of Apple's implementation of the payment system.
It'll be fine if they copy Apple Pay. By mid-2015, Apple Pay will be so far out of the gate, it won't even be a race anymore. I used it last night at Walgreens for the first time. It was ridiculously easy. In 6 months, everyone will be using this.
Obviously, the stupid part of this is the contract requiring merchants not to accept anything else. One would think a merchant would want to take as many forms of payment as they can, for the convenience of the customer.
Well, any merchant has to draw the line somewhere. Do they want umpteen payment scheme devices sitting on their counters? They already have NFC and card swipe terminals. It has been pointed out that the EMV mandate will require all terminals be compatible with the chip/pin method (which is NFC I believe). The CurrentC scheme will be D.O.A before it hits the ground.
C stands for CRAP
Consumer Rape and Pilliging
There is another benefit to ApplePay.
Every swipe of your actual credit card appears as a notification on your phone (if set appropriately). This will help reduce fraud further by allowing detection of cloned credit cards. Also works with iTunes purchases. May do so with other online purchasing.
Tthat is far more secure than an exposed debit card or bank account. You have instant feedback.
Whatis interesting, is after I added an AMEX and a Capital One visa to Apple Pay, I started to get notifications for other authorizations on the Capital One and the AMEX on my phone. Something in the sign up process set that up. Which is pretty cool.
It'll be fine if they copy Apple Pay. By mid-2015, Apple Pay will be so far out of the gate, it won't even be a race anymore. I used it last night at Walgreens for the first time. It was ridiculously easy. In 6 months, everyone will be using this.
But they won't copy Apple Pay because they want to avoid the credit card companies, and to not pay the fee.
So they'll still require access to my bank account (via ACH or debit card). And I am not about to give them that. Or my SSN. Or my driver license info.
Doing NFC would be smart but that's nowhere near enough. Apple doesn't allow that (direct access to NFC) but probably will later on.
MCX posted a new blog post on Wednesday entitled "Answers to Your Questions," in which CEO Dekkers Davidson promoted his company's forthcoming CurrentC mobile payment service. A number of major retailers are partners in the program, and the contract forbids them from using alternative mobile payment services like Apple Pay.
But while CurrentC is an exclusive program, retailers who wish to stop working with MCX do not pay any fines, Davidson said. He also touted "key benefits" of the system, such as cross-platform compatibility, and the ability to integrate coupons, loyalty cards and payment methods into one "seamless transaction."
Davidson also addressed concerns about consumer privacy and data security, particularly considering the service taps directly into users' bank accounts rather than using credit cards. The CEO said that MCX will not store sensitive customer data within the application, and will instead save it on a "secure cloud-hosted network."
"Removing this sensitive information from the mobile device significantly lowers the risk of it being inappropriately disclosed in a case that the mobile device is hacked, stolen or otherwise compromised," Davidson wrote.
As for collection of consumer data, the MCX chief executive said users will be able to "make informed decisions" about their personal data through a privacy dashboard in the CurrentC mobile application. CurrentC will also comply with privacy laws required by the Health Insurance Portability and Accountability Act, or HIPAA.
"CurrentC does not collect any information from any other apps, or health information stored in the mobile device," Davidson said. The CEO also included a link to the CurrentC privacy policy, but as of Wednesday morning the page was broken, returning a 404 error.
MCX has found itself under fire after merchant partners Rite Aid and CVS began declining Apple Pay and Google Wallet NFC-based transactions this past weekend. Other MCX partners, including Walmart and Best Buy, have already announced they will not support Apple Pay.
The CurrentC payment system from MCX is set to roll out in 2015, and it relies on unique QR codes that are presented upon checkout. Unlike Apple Pay, which allows users to simply place their iPhone within proximity of a compatible terminal and authorize the purchase with their fingerprint, CurrentC requires users to unlock their device, launch the application, and have a retail employee scan the QR code displayed on their device.
The consortium is looking to bypass credit card network fees by linking directly to customers' bank accounts, which has raised some security concerns amongst critics. Apple's system instead works with existing credit card providers, allowing users to continue to receive the same points, benefits and rewards when completing transactions via their iPhone.
In addition to avoiding swipe fees, CurrentC enables purchase tracking and processing for loyalty programs, coupons and special offers to further boost MCX merchant sales.
Apple Pay launched on the iPhone 6 and iPhone 6 Plus last week, and users activated more than one million cards in the first 72 hours of availability. That means within just three days, Apple Pay became the largest contactless payments service in the U.S., outpacing services like Google Wallet which have been on the market for years.[and CurrentC just announced their email addresses were hacked. How sweet that is!
Does that mean these merchants are no longer allowed to take cash too?
Retailer-Backed Apple Pay Rival CurrentC Has Been Hacked, Testers’ Email Addresses Stolen http://tcrn.ch/10yNMTX
Many retailers currently offer store credit cards which are actually bank credit cards that are exclusive to that retailer. For example, the Home Depot card is actually a Chase MC. Other companies offer a branded CC such as American Airlines which is good anywhere in the world. I'd be surprised if AA is not getting some of the swipe fees. You'd think that after doing the math the MCX members would see the adverse side effects of alienating their customer base verses working with the banks to get some of the fees back by offering their own branded CC. I would predict a net loss for the system in its current form even if ?Pay didn't exist.
Someone mentioned in another thread that we should load up a shopping basket and then leave it at the check stand because they didn't accept ?Pay. Intentionally doing so would be quite offensive as all it would do is make some minimum wage worker go put all the merchandise back, but I see this happening unintentionally thousands of times a day across the country where people expect to pay with regular plastic CC and not being able to. Big inconvenience to both consumer and merchant.
Well, any merchant has to draw the line somewhere. Do they want umpteen payment scheme devices sitting on their counters? They already have NFC and card swipe terminals. It has been pointed out that the EMV mandate will require all terminals be compatible with the chip/pin method (which is NFC I believe).
No - EMV does not require NFC. Many merchants are including NFC in the new terminals they're getting but it is separate from chip+PIN or chip+signature.
In fact, NFC transactions such as PayPass/paywave are NOT "chip+PIN" transactions. If they're contactless then there's no PIN. That's why in Europe they're limited to $20 or so and you can't do more than about four without an actual put-in-the-chip-slot-and-enter-your-PIN transaction. You have to do it once every four or five times. This way a lost card can't continue to be used forever.
CurrentC is an absolute anti-consumer joke. A disaster on wheels.
The CEO said that MCX will not store sensitive customer data within the application, and will instead save it on a "secure cloud-hosted network."
Was that meant to be a joke?
Why, yes! And, given the very next article, we can all start laughing now...
NEWS FLASH from CNBC! CurrentC just announced it has been hacked in the last 36 hours and that customer test data has been compromised. More to follow.
I thought you were joking, but it's the top line on CNBC right now. They claim only email addresses lost, but then spin it with this gem: "Many of these email addresses are dummy accounts used for testing purposes only."
I guess it could get worse for these clowns, but I'm enjoying the show so far!
Why anyone would use CurrentC blows my mind.
Direct access to my checking account without any benefits? HELL NO.
I use a debit card because I get massive benefits:
I charge about $150 on my debit card a month.
I can withdrawl cash at ANY ATM without a fee.
I get $1200 a year in rewards checking interest.
Without those benefits I would use my creditcards exclusively.
I pay for 99% of what I buy via my credit card, earning maybe $400/year in "cash back." I never saw the appeal of debit cards, but I also wasn't aware there was a way to get $100/month is rewards. What's the secret? (I assume it's not "keep $250,000 in your checking account earning 0.05% interest.")
Even if their cloud security protects personal info as well as they claim, the knock against MCX is that they collect and share that data to begin with. MCX comes across as anti-consumer because it inconveniences customers with QR codes and PIN numbers and requires direct access to their bank accounts. And for what? So that retailers can mine more information about their customers?
The privacy protections built into Apple Pay are a direct threat to the retailers' data collection efforts. It effectively walls off the retailers from linking transactions to individual customers. The customer has control over when they want to use a loyalty card or share any other information that might link a purchase to whatever profile the retailer might have on them. Otherwise, a purchase is just a purchase (kinda like how it is when paying with cash).
Oh it's saved in the cloud, all good then. I was under the impression it was stored in a man-purse, hence my opposition to this system.
Carry on.
How many of you would like to pay a 2% or 3% royalty every time you sold a product in your store? How many of you would like to pay no royalty every time you sold a product in your store? If a company can give you a payment system, where they don't have to pay another company a royalty fee, then that is the ideal method for them.