Two major pharmacy chains have stopped supporting Apple Pay as merchants in the U.S. take sides on which mobile wallet platform to embrace.
Reports from a couple days ago revealed that Rite Aid had started disabling its NFC terminals, thereby forbidding the use of Apple Pay and Google Wallet. Now CVS has reportedly started shutting down its NFC terminals.
Spotted by MacRumors this morning, Apple Pay has been blocked by CVS locations around the country.
@Ihnatko I’m a Shift Supervisor and corporate sent out an email to the stores telling us that as of today, NFC was turned off.
— Jonathan Sprewell (@jsprewell) October 25, 2014
Yesterday SlashGear uncovered an internal Rite Aid memo explaining that NFC was disabled because the chain is “working with a group of large retailers to develop a mobile wallet that allows for mobile payments attached to credit cards and bank accounts directly from a smart phone.”
That mobile wallet service in question is called Merchant Customer Exchange (MCX), and CVS is listed as a partner as well. “Please instruct cashiers to apologize to the customer and explain that we do not currently accept Apple Pay, but will have our own mobile wallet next year,” said Rite Aid in the memo.
MCX was in the works before Apple Pay was announced, and many big brands are part of the consortium, including Wal-Mart, 7 Eleven, Banana Republic, Gap, Old Navy, Dunkin’ Donusts, Bath & Beyond, Shell, Southwest Airlines, Dick’s, Dillards, Kohl’s, and Sears. Instead of NFC, MCX is based around an app coming next year called CurrentC. The app displays a QR code on the user’s smartphone for scanning at checkout.
This is the app that’s supposed to rival Apple Pay. Not a single bank on board yet. https://t.co/qd6GgGV9fj
— Alexspooks Heathcula (@alexeheath) October 25, 2014
While Apple Pay can technically work at any NFC-equipped checkout terminal, that doesn’t mean the merchant is on board. Walgreens for instance, is listed as an official Apple Pay partner, while Rite Aid and CVS never were. It’s a subtle but clear distinction that, in the case of Rite and CVS, draws a line between MCX and Apple Pay supporters.
Banks have been enthusiastically marketing Apple Pay, and Apple’s momentum is strong right now. It will be interesting to see if CurrentC can compete after Apple Pay has had months to roll out.
Alex Heath is a journalist who works for Tech Insider. He’s the former co-host of The CultCast. He has been quoted by the likes of the BBC, KRON 4 News, and books like “ICONIC: A Photographic Tribute to Apple Innovation.” He lives in Lexington, Kentucky. If you want to pitch a story, share a tip, or just get in touch, additional contact information is available on his personal site. Follow him on Twitter.
88 responses to “CVS and Rite Aid block Apple Pay as mobile wallet war heats up”
CurrentC displays a QR code… Because that really took off 5 years ago.
Heard that there is a webpage called “succes stories of QR-Code” – and the page is … blank.
the most human-unfriendly technology ever invented, the QR-code…
I thought QR died 5 years ago.
Who ever creates a sarcasm font will be rich.
This is ridiculous! I’m definitely not shopping at Rite Aid or CVS anymore.
If only I could. The company I work for has CVS/Caremark as our prescription company. We have multiple long-term prescriptions and HAVE to use CVS (or by-mail, but that is not as convenient for me) for those types of perscriptions.
Im in the same boat. I may go to human resources and ask if I can use a different prescription provider.
Screw CurrentC. They want us to store our checking account numbers in their cloud? NO WAY.
Not only that but if you use your bank account which I will never do they ask for social security number and drivers license number. Not only is qr code system less secure than nfc but it is not as smooth as nfc. I hope they fail before they get started. Luckily I have a walgreens right next to cvs at about 98% of the stores I go to.
yeah, would definitely not be using currentC. I’ll either avoid these stores altogether or just use whatever I’ve been using before.
All those pharmacies are interchangeable. I will avoid Rite Aid and CVS from now on.
My guess is its all about money or more specifically the fees that merchants are currently paying for credit card processing. The MCX consortium may strive to reduce fees to the merchant but may not be as motivated for consumer privacy and security as Apple is with Apple Pay.
QR Codes … who can resist top notch technology when it is available ;-)
If Rite Aid and CVS would decide not to install terminals that allow NFC & Apple Pay that’s one thing. But removing available and already running technology is ridiculous and customer unfriendly. Would make me to avoid these places!
Lets see if we can put it in terms that Apple can understand. The MCX is a ‘consortium’ and more than likely the merchants have a say big in its future. The answer is simple – Apple joins in with MCX.
It’s clear you don’t understand how the NFC system works over the MXC system. NFC is a worldwide accepted standard across smart phones and credit cards with pin chips, and these morons are switching it off? Yep, real smart.
So Apple spend massive R&D time and money on the most secure NFC payment system on the planet in conjunction with hundreds of banks and businesses, and you think they’ll just drop it to adopt someone else insecure, invasive QR code system that tracks your buying habits. Yeah Right!! Ha ha ha ha. Time to give up the bong buddy.
How is apple pay going to join mcx when they don’t use NFC? It is going to be the other way around especially since the apple pay system is more secure and more user friendly.
Even if CurrentC is equally as great as Apple Pay (Which is never going to happen), Apple Pay still wins by default because Passbook is pre-installed!
Apple doesn’t even have to allow this App on the App store due to the “Duplicates System Functionality” rule.
They don’t support Google Wallet either. Cut that app off Android and this is DOA.
This!!! Apple should not let CurrentC on the largest mobile ecosystem on the planet. Tit for Tat
I hate CVS stores as it is already here in the Chicago area, they are dirty, dingy and not well stocked they for sure now gave me a reason to avoid them.
The not well stocked and dirty would be reason enough for me to avoid a pharmacy.
@ShadowBJ21. You are correct, for Rite Aide and CVS to DISABLE their NFC readers and not accept Apple Pay just in spite is a terrible business decision. Not very smart on the “PR” front. There will probably be more than 20 million iPhone 6 users by the end of this year (if there aren’t already?) who are out there shopping and specifically chose the convenience, security, and privacy of Apple Pay in their phone-buying decision. I will definitely be patronizing Walgreens and boycotting the others.
If the green light os lit the nfc is still on. Keep that in mind.
Abuse of customers; they will go far.
Moving prescription and other business to Wallgreens
That’s ok, we’ll just boycott their stores and make purchase where we can use our Apple Pay or Google Wallets. Their loss. Frankly, CVS is one of the worst pharmacy chains around. The store by me always looks like a tornado came through it. Complete chaos. And other stores in the metro area are no better. They rarely have what I need in stock. A regular crap show. And, as for Walmart, well, the few times I want to be a “Walmartian” I’ll use cash.
Probably because they laid off all of their employees. The CVS by my office has all self-checkout and if you want to check out with a person, you have to go and find someone to help. Great at cutting the bottom line, not great in retaining customers or keeping your stores looking nice.
No more Rite Aid for me.
My prescription refill is due in two weeks. After years with CVS, I will now be doing business with someone else (likely Walgreens if they continue supporting ApplePay).
I was at the CVS yesterday and they don’t accept NFC. I thought it was just my internet connection there is no service underground, but it may be that the NFC was turned off there. So I reported it to soft card.
you don’t need the Internet to use NFC.
Bad mistake on CVS and Rite Aid’s part
It’s quite obvious why they are shunning Pay in favour of the garbage they call MCX, they want to track our purchasing habits, target us with marketing, and don’t give a hoot about consumer privacy and security.
And they seriously expect me to use antiquated QR barcode tech with an additional app when I have Pay at my disposal, and their tills actually have NFC readers? Their PR team should be fired. Though not in the US, but when the tech comes to Canada and if I travel there, I will NOT shop there, or ANY chain that deliberately shuts off Pay!
*Donuts
In this case, I think Apple and Android should cooperate and demand that any mobile wallet app that would like to be approved for the stores insist in an open access policy. Closed consortiums of retailers should be denied access to distribute their paypoint apps through official channels IMO. Android could still side-load, but for apple, that would mean full lockout (minus jailbreaks, which are a very tiny percentage). Free and fair competition, or GTFO.
Well they just lost my business
I used Apple Pay at Rite Aid three hours ago. The reason the drug stores are turning it off is because they have been made aware of a clause in the contract they signed with MCX, that disallows them from accepting ANY other form of electronic mobile payments. What a joke. The MCX system is not a tenth as secure as apple pay, and won’t be out until sometime in 2015. What kind of morons go ahead and sign a binding contract on a “wishful at best” technology that won’t be out for up to a year. Especially knowing that mobile payment systems are currently “all the rage” and it’s likely that someone (such as Apple has) will implement a system
Clearly these companies aren’t happy about not being able to track your spending habits and are hell bent on going down this path to access your details and use it to make more money. Somehow I don’t think Apple and Google will roll over on this one. Like the 21st century is interested QR codes anyway. It’s taken them 2 years to get this far and they still haven’t rolled it out.
Apple should buy MCX immediately whether they like it or not.
Once again the rich d’bags of business screw consumers for their own benefit
Once again rich d’bags screw consumers for their own benefit. Damn the fact Apple Pay is more secure or protects consumers, as long they can get the data and stats they want…
Why are all you guys so Apple loyalist? I’m sure CVS and Rite AID are making a business decision. Its not meant to be personal. Hey, Apple just banned Bose from its Apple stores. Nothing personal, just business.
Apple banned Bose because Apple owns/sells Beats.
Exactly, you made my point perfectly. Its business not personal.
Sure it’s just business but your comparison isn’t the same. CVS and Rite AID don’t own MCX. Apple selling Bose is a direct conflict of interest in their own investments and tech. CVS and Rite AID could just as easily switch NFC back on and allow Apple Pay.
I agree, and I hope Apple and Google likewise make a business decision to deny this app from their App Stores. That would outright kill this stupid CurrentC crap in its tracks since it uses THEIR hardware to work.
I hope Apple isn’t that petty. I also hope they do it anyway.
It’s actually bad business for them in the long run. If Apple decides to change the App Store terms and conditions (which they can very easily do) to allow only NFC-compatible apps for this kind of mobile wallet, then these stores stand to lose all iPhone customers, too, who would probably chose to shop elsewhere, an example of which you see in the multitude of comments here.
And it will just be business when Apple denies the CurrentC app on the iPhone due to it competing with their Apple Pay system feature. Except all the trolls will be crying “No fair!”
These companies don’t realize they are heading down the road to failure. Don’t mess with Apple.
That is understandable, but in this case they are choosing a service that is less secure and tracks your shopping for direct sale of your info. That is why ross which is an mcx customer asks for zip code. They link your card with your address and sell your info to make money. Google does the same thing but they keep that info in house. Apple doesn’t do that, or that we know off. Also the currentc system is insecure which they admit. So i myself am not an apple loyalist. I just prefer to have a more secure system. Plus I use both google wallet and apple pay.
Exactly. I am a google wallet user and I applauded apple for their nfc payment system as it pushed it even more into the market to make it safer to make payments. What mcx and its clients like cvs and riteaid are doing is moving back and making it less secure for it’s customers.
That’s fine… I’ll just shop at Walgreens, where they do take Apple Pay… Talk about shooting yourself in the foot…That’s just stupidity on CVS and Rite Aid’s part.
No, because most people will shop where it is convient. Secondly, like grocery stores, drug stores are territorial. Except in some highly populated areas you will not find two of the same type of store located near each other. So, you are not going to find people driving out of their way to show loyalty to Apple. Apple’s strength rests in a world wide customer base. In America, many Americans cannot afford the iPhone. You see in America there if room for all not just Apple. That’s a good thing because our economy depends on competition not a monopoly.
Simply, Apple Pay will become one of many pay methods. I will use it when I replace my 5s with a 6+ next month. But, I will not be driving all over town looking for Apple Pay vendors. I will still have a credit/debit card that are not going away anytime soon.
Most people will, sure, but using the CVS example, if there’s a CVS nearby there is probably a Walgreens nearby as well.
I will not drive all over town looking for ApplePay stores either. but I will note which ones use ApplePay and probably alter my shopping behavior to favor those stores.
CurrentC is doomed anyway – it will be far more convenient to pay with plastic than use CurrentC, and there is no benefit to the consumer – quite the opposite actually.
What are you talking about? More than 10million were sold in the first week the iPhone 6 went on sale.
How will CurrentC work with no Bank support? On top of that, what happens if Apple & Google kicks them out of there App Stores? Wont they be DOA?
You’re right Grunt, BUT from what I’m reading, CVS and Rite Aid will still lose some business, whatever percentage that ends up being. I could almost see their point, IF they had their smartphone NFC payment system (CurrentC) setup, but they don’t (from what I read). Luckily, I have all three of the stores very close to me, so it’s easy for me to boycott any of them. Furthermore, their upcoming CurrentC systems will collect every bit of data from your transaction, which they obviously want, where Apple Pay does not, but then the majority of users will never even think about that.
Wont it be a big deal the next time CVS or one of these stores n this consortium is hacked, and credit card numbers are stolen, but Apple Pay users at Wallgreens And Apple Pay users are not affected.
I’ve just contacted both CVS and Rite Aid customer care… and advised that they’ve lost a customer. You might want to do the same… just google Rite Aid / CVS ‘contact customer care’ etc.
Even more fun. Go to a Rite-Aid or CVS, pick up about $1000 worth of merchandise, then when they don’t take the payment, walk out. Whether Apple Pay or Google Wallet.
If I had an iPhone 6, I would do exactly that. Got a 5s, so I can’t.
I’ll continue to never shop at either place.
“CVS and Rite Aid block Apple Pay as mobile wallet war heats up”
This will change. When their sales start to drop, their NFCs will fire up again. I’ll take bets on that.
I agree… I’m sure MCX will last half a year at the most.
I’ve never actually scanned a QR code nor have I ever even downloaded a scanning app. Won’t be using CurrentC either.
I was going to download a scanner app once and it wanted access to all of my personal information. I did not download it. Never will.
Rite-Aid isn’t down here in FL. Only CVS and Walgreen’s. Walgreen’s will now be getting most of my Pharmacy related business. Screw CVS.
I have been shopping at Rite Aid because it was the best/closest of my choices, but no more now. I gave up on CVS a long time ago because the stores feel very outdated. Although Walgreen’s is not as close, I will travel the extra distance to vote with my dollars and will use ApplePay when I do.
http://www.change.org/p/merchant-customer-exchange-enable-nfc-terminals-for-apple-pay-and-google-wallet
CurrentC… Finally a war that both iOS and Android fanboys can join forces to defeat!!
:-) :-)
Agreed. Taking on Apple OR Google is one thing. Taking on Apple AND Google is just mindless suicide.
It’s not just ApplePay, it’s Google Wallet too. This is damaging to the ability of the overall market to move to secure payments.
CurrentC is just stupid all the way around. Let’s compare:
ApplePay – see total, press touch id button, done. Currently the most secure way to use a credit card which has lots of consumer protections, and I can pay my bill at the end of the month.
CurrentC – unlock phone, launch app, line up the QR code so the camera can see it properly, type some info, submit. Have retailer take money from account tied directly to my bank account, and let’s not forget the awesome track record these yahoos have regarding protecting consumer payment data). No consumer protections like credit cards. No wonder banks don’t support it, because it will end up on them, and they aren’t getting the fees that credit card transactions do.
Make no mistake, this is the retailers trying to circumvent the credit card processing system to save 3% (that they long ago marked everything up to offset that expense is neither here nor there, right?), and to get your info, info they don’t get when you use ApplePay.
How this could be mitigated
1. Apple has something like 60% share of smart phones in the US. They could, and should block the CurrentC app from the App Store on the grounds that it competes with ApplePay, and it just a really bad idea for consumers.
2. Visa/MC/Amex could update their rules to specify that merchants cannot block NFC payments and could actually require that merchants use terminals to accept them.
So now I will shop at Walgreens instead of CVS.
This will not end well for the MXC. They will spend hundreds of millions on this effort, some people will use it, but most people will probably just use their traditional insecure credit cards, some of these merchants will get hacked costing them additional 100s of millions, and they will finally capitulate having wasted tons of money and time and lost customers.
MCX sounds crazy… QR code is just one integer, one way. NFC has a secure handshake, 4 messages, 2 each way…
seems like MCX will not authenticate the merchant to the phone…
….One number one way cant even securely authenticate the shopper.
separate tamperproof chip is required
apps can be spoofed
i’ll still buy stuff from cvs…because it’s a go to place….but i’ll pay them with pennies and nickels…or maybe quarters as well..just because i don’ like to bring cash with me and it’s a way to protest.
Have a look at the reviews of the App, this won’t go anywhere, and as most of the previous comments have stated, who the hell wants to use a QR code? This App is lame as is any business that thinks this is going to take off. Storing credit cards in the cloud is a big NO NO.
Created a Google drive document that lists the merchants accepting Apple Pay. People may contribute to the list as well… if you’re interested, have a look. I will be updating the document periodically.
https://docs.google.com/spreadsheets/d/1UsYadGL9k7AMf3NzufYsXcGiyYTWEPiWJYPvLnsG504/pubhtml
Boycott CVS & Rite Aid
http://youtu.be/9ZHusVNa1_A
Apple pay is the quickest, fastest, most secure and easiest form of
paying for an item in a store I have seen. I do not agree with these
stores that are now disabling their NFC systems to not accept Apple Pay.
I think they are cutting off their respective nose’s to spite their
face.
(1) Apple pay would drastically reduce time spent in line. Because every
time I have used Apple pay so far in the 6 days since it’s initiation
it only took 2 seconds max to get an approval and a receipt on apple
pay.
(2) It is not good business sense to piss off your customers.
(3) Since the majority of I-Phone 6 and 6+ owners usually have a higher
buying power. These merchants will be left with only the poor
patronizing their stores.
(4) It however, seems that they are mostly after the poor with the
adaptation of the MCX or CurrentC system they want to utilize. Since
this will give them direct access to peoples bank accounts. I’ll be
damned if I will give them access to my account.
(4) It would not be so bad if their current system did not allow for the
use of Apple Pay. However it does because it is the NFC system. Both
CVS and Rite Aid’s system accepted payments by way of Apple pay for the
first three days of this week. Now to willfully disconnect the machines
from the NFC system to me is malicious. This shows little disregard for
their clients and prospective clients. (Their machines now say ” We do
not accept Apple Pay”) That had to be programmed into the machines.
I am suggesting a boycott of these two stores. Since I know for certain
they accepted apple pay and then and now refusing. It is a simple and
easy boycott see link http://youtu.be/9ZHusVNa1_A
It is interesting to note that BestBuy who also rejects ApplePay still has their NFC terminals working, however when you go to tap to pay, the register rejects the transaction. So BestBuy still has its head in its ass.
Cash is king? Seriously, they want a double exchange by QR-Code, access directly to my bank account, and they keep ALL the data on their cloud (how’s that working for you Target, a member of this “consortium”). Well, back to using my AMEX card at all these dummies which costs them EVEN MORE fees.
Nothing like being told we don’t want “your” money to entice me to want to shop with you CVS/Rite Aid.
How about apple just decline to approve any “CurrenC” apps that may be submitted by these companies? In fact, why not just boot all of their mobile apps if they dont want to play nice.
http://www.nbcnews.com/video/cnbc/56310441/#56310441 describes how, as part of the MCX alliance, Rite Aid is getting muscled into refusing Apple Pay, despite having the PoS hardware to do so.
The picture is of a Walgreens card machine…