September 5, 2014
Will new retailer CurrentC change how consumers pay for goods?
Back in 2012 when major retailers including 7-Eleven, Best Buy, CVS, Hy-Vee, Lowe’s, Publix, Sears Holdings, Target, Walmart and others made public plans to develop a mobile payment system as part of the Merchant Customer Exchange (MCX), expectations for success were high. After all, not only did cooperation from the chains address the hurdle of retailer adoption, it seemed a clear signal that merchants were not pleased with third-party mobile payment options created by banks, telcos and technology companies.
Now comes word from MCX that it is actively engaged in pilot testing and its mobile wallet app known as CurrentC will be ready to launch on a wide scale in 2015.
"CurrentC will offer customers a simpler, faster, secure way to checkout at their favorite merchants," said MCX CEO Dekkers Davidson in a statement. "At full scale, CurrentC will be accepted in more than 110,000 merchants locations across the country, giving consumers unmatched access to their favorite retailers. It will also offer innovative features and instant coupon savings, all stores on the phone and available right at the point-of-sale."
The CurrentC app will be free to consumers and available through Apple’s App Store and Google Play. The goal of the app is to expedite customer checkouts by having discount offers and coupons, merchant reward information and payment data available to be processed in a single scan.
CurrentC will work with most smartphones as well as most existing point-of-sale and payment terminals. According to MCX, CurrentC will use a secure paycode and will not require any additional hardware for most merchants.
"The CurrentC Network will provide merchants with unparalleled reach and resources in the mobile payments category," added Mr. Davidson. "It will offer merchants new and exciting channels to engage with customers, strengthen relationships and enjoy more control of transaction data."
BrainTrust
Recent Discussions
Discussion Questions
Will the launch of CurrentC rapidly expand the use of mobile payments by consumers? Do you think the support of retailers for CurrentC will spell the end for other mobile payment options?
Poll
I was cautiously optimistic about the prospects for MCX prior to the CurrentC announcement. Rarely does a consortium of retailers (many of whom are competitors) band together to out-do focused entrepreneurs. But Paydiant (MCX’s technology partner) is a solid backbone, and Dekkers Davidson is a strong leader.
So I was disappointed by this seemingly-rushed announcement. CurrentC doesn’t work with the major credit card players, which makes it a non-starter out of the gate. For all of the boilerplate about simplifying and enhancing shoppers’ experience, paying with my checking account, gift cards or retailer-issued cards doesn’t sound simple or enhanced.
Apple is reportedly partnering with Visa, MasterCard and AmEx in the run up to its expected iWallet announcement next week. While their model may not meet the MCX members’ objectives of eliminating interchange fees, I expect it will more effectively simplify and enhance shoppers’ experience of paying than this early iteration of CurrentC.
MCX should finally launch widespread acceptance of mobile wallets and payments. It only has to work as planned.
MCX combines mobile payments, loyalty programs and promotional offers. This alone will grab consumer interest. Consumer participation will depend on intuitive ease of use, retail acceptance and security.
Security is a large potential stumbling block. If this system gets hacked soon after release, it could die before it gains widespread use.
It’s too soon to say if MCX will spell the end of other mobile payment options. First MCX has to work as planned. Second, it needs to be secure. And third, it needs to stay in the forefront of payment technology, something the retailers behind it have usually not been able to do.
To date most wallets have focused on the value proposition for consumers. MCX, on the other hand, has merchants’ needs in mind. Of course you’ve got to please both constituents for wide-spread adoption, and the verdict is still out on CurrentC. At this point any predictions are useless until we know what Apple does next week.
I think the answer to the first question is an obvious yes.
As to the second, only time will tell. The devil is in the details, especially those details centering on security.
The convenience will appeal to a group of consumers. The more retailers involved in the consortium, the better for those who want this convenience. However, the continued news of more data breaches is an obstacle for any kind of mobile wallet. The claims of security, especially when at least one member of the group has had a major breach after assuring consumers of security, will ring hollow to another group of consumers. While a consortium may move the process ahead, one data breach will end their superiority.
After looking at all the factors I think there is no reason to believe that as long as CurrentC does a good job with their promotional outreach efforts, that they won’t change the way consumers pay for goods.
Not only is the new retailer more appealing to users considering their simple, faster and more secure ways to checkout at over 110,000 merchants across the country, as well as adding perks like instant coupons, but they also seem to have confronted the problem with previous retailers in gaining cooperation from the chains.
They’ve done this through attempting to appeal to them as well, through new and exciting channels to engage customers, strengthen relationships and enjoy more control of transaction data. Additionally, considering the amount of merchants they’re available at, as well as the factor of having a free phone application, and being able to work with most smartphones and existing point-of-sale and payment terminals, it seems inevitable that CurrentC is bound for some success.
Getting a consumer to switch from credit to debit and give up their points, air miles, cash back rewards, etc. will not be an easy task. Retailers who want to reduce credit card interchange fee transactions in favor of CurrentC will need to reinvest some of their new found expense reduction back into the rewards platform that is compelling enough to get the consumer to stop using their Visa, MasterCard or Discover card. I am not sure the business model allows for such re-investment.
Accordingly, I remain pessimistic that any of this will happen fast enough to make an MCX concept viable.
With or without CurrentC, adoption of mobile payments by consumers are bound to accelerate in the coming months and years. This announcement appears timed to ensure CurrentC gets some airtime ahead of the impending media blitz by Apple next week and their anticipated iWallet.
On the second question, absolutely NOT. Consumers love to have options and technology doesn’t stand still. While consumers will be the final arbiters of who “wins,” their choices are limited by the existing offering, the fierce ongoing turf wars and the imagination of those yet to come.
There are definitely some advantages to both the consumer and the retailer if this platform can supply a wide range of functionality that can be build upon and customized. But unless the mobile payment offering enables the consumer to connect with their preferred credit cards, then I do not see CurrentC being widely adopted by the consumer.
I don’t think there is much doubt mobile payments will eventually take off as the technology evolves and younger consumers who grew up with it as a first choice expand their influence. I certainly use mobile payments from time to time, but for the most part they always seem like a solution in search of a problem to me, because as a person with a pocketful of credit/debit cards it is just easier to use one of those. I understand that the attitude is changing, but to date there just doesn’t seem to be any urgency, so at least in the short term, I don’t see this making much of an impact, unless retailers really invest to motivate shoppers to switch.
I am looking forward to mobile payment options, however, I remain leery about a payment option created by retailers.
Don’t get me wrong. You all know that I love retail! My issue is that for a payment option to work, especially a mobile payment option, it really needs to be all about the customer…or they won’t come!
For my 2 cents….
They have a huge opportunity to do so based on their retailer membership. However, unless they do something to encourage consumers, like air miles and rebates, in my judgement consumers will just continue to pull a Visa from their wallet.
BIG mistake not to include NFC, given HCE. Apple may, if we can believe the forecasts, trump CurrentC.
We consultants have been envisioning this for years. Perhaps there may be a couple platforms that will need to be thinned out eventually. And in a couple years, there will be one method of mobile payment across the globe … hopefully.
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I was cautiously optimistic about the prospects for MCX prior to the CurrentC announcement. Rarely does a consortium of retailers (many of whom are competitors) band together to out-do focused entrepreneurs. But Paydiant (MCX’s technology partner) is a solid backbone, and Dekkers Davidson is a strong leader.
So I was disappointed by this seemingly-rushed announcement. CurrentC doesn’t work with the major credit card players, which makes it a non-starter out of the gate. For all of the boilerplate about simplifying and enhancing shoppers’ experience, paying with my checking account, gift cards or retailer-issued cards doesn’t sound simple or enhanced.
Apple is reportedly partnering with Visa, MasterCard and AmEx in the run up to its expected iWallet announcement next week. While their model may not meet the MCX members’ objectives of eliminating interchange fees, I expect it will more effectively simplify and enhance shoppers’ experience of paying than this early iteration of CurrentC.
MCX should finally launch widespread acceptance of mobile wallets and payments. It only has to work as planned.
MCX combines mobile payments, loyalty programs and promotional offers. This alone will grab consumer interest. Consumer participation will depend on intuitive ease of use, retail acceptance and security.
Security is a large potential stumbling block. If this system gets hacked soon after release, it could die before it gains widespread use.
It’s too soon to say if MCX will spell the end of other mobile payment options. First MCX has to work as planned. Second, it needs to be secure. And third, it needs to stay in the forefront of payment technology, something the retailers behind it have usually not been able to do.
To date most wallets have focused on the value proposition for consumers. MCX, on the other hand, has merchants’ needs in mind. Of course you’ve got to please both constituents for wide-spread adoption, and the verdict is still out on CurrentC. At this point any predictions are useless until we know what Apple does next week.
I think the answer to the first question is an obvious yes.
As to the second, only time will tell. The devil is in the details, especially those details centering on security.
The convenience will appeal to a group of consumers. The more retailers involved in the consortium, the better for those who want this convenience. However, the continued news of more data breaches is an obstacle for any kind of mobile wallet. The claims of security, especially when at least one member of the group has had a major breach after assuring consumers of security, will ring hollow to another group of consumers. While a consortium may move the process ahead, one data breach will end their superiority.
After looking at all the factors I think there is no reason to believe that as long as CurrentC does a good job with their promotional outreach efforts, that they won’t change the way consumers pay for goods.
Not only is the new retailer more appealing to users considering their simple, faster and more secure ways to checkout at over 110,000 merchants across the country, as well as adding perks like instant coupons, but they also seem to have confronted the problem with previous retailers in gaining cooperation from the chains.
They’ve done this through attempting to appeal to them as well, through new and exciting channels to engage customers, strengthen relationships and enjoy more control of transaction data. Additionally, considering the amount of merchants they’re available at, as well as the factor of having a free phone application, and being able to work with most smartphones and existing point-of-sale and payment terminals, it seems inevitable that CurrentC is bound for some success.
Getting a consumer to switch from credit to debit and give up their points, air miles, cash back rewards, etc. will not be an easy task. Retailers who want to reduce credit card interchange fee transactions in favor of CurrentC will need to reinvest some of their new found expense reduction back into the rewards platform that is compelling enough to get the consumer to stop using their Visa, MasterCard or Discover card. I am not sure the business model allows for such re-investment.
Accordingly, I remain pessimistic that any of this will happen fast enough to make an MCX concept viable.
With or without CurrentC, adoption of mobile payments by consumers are bound to accelerate in the coming months and years. This announcement appears timed to ensure CurrentC gets some airtime ahead of the impending media blitz by Apple next week and their anticipated iWallet.
On the second question, absolutely NOT. Consumers love to have options and technology doesn’t stand still. While consumers will be the final arbiters of who “wins,” their choices are limited by the existing offering, the fierce ongoing turf wars and the imagination of those yet to come.
There are definitely some advantages to both the consumer and the retailer if this platform can supply a wide range of functionality that can be build upon and customized. But unless the mobile payment offering enables the consumer to connect with their preferred credit cards, then I do not see CurrentC being widely adopted by the consumer.
I don’t think there is much doubt mobile payments will eventually take off as the technology evolves and younger consumers who grew up with it as a first choice expand their influence. I certainly use mobile payments from time to time, but for the most part they always seem like a solution in search of a problem to me, because as a person with a pocketful of credit/debit cards it is just easier to use one of those. I understand that the attitude is changing, but to date there just doesn’t seem to be any urgency, so at least in the short term, I don’t see this making much of an impact, unless retailers really invest to motivate shoppers to switch.
I am looking forward to mobile payment options, however, I remain leery about a payment option created by retailers.
Don’t get me wrong. You all know that I love retail! My issue is that for a payment option to work, especially a mobile payment option, it really needs to be all about the customer…or they won’t come!
For my 2 cents….
They have a huge opportunity to do so based on their retailer membership. However, unless they do something to encourage consumers, like air miles and rebates, in my judgement consumers will just continue to pull a Visa from their wallet.
BIG mistake not to include NFC, given HCE. Apple may, if we can believe the forecasts, trump CurrentC.
We consultants have been envisioning this for years. Perhaps there may be a couple platforms that will need to be thinned out eventually. And in a couple years, there will be one method of mobile payment across the globe … hopefully.