A collective of major US retailers, including Walmart, Target, Best Buy, Sunoco and 7-Eleven, plan to create a joint mobile wallet service, joining the already crowded market of mobile phone payment (m-payment) services.
More than a dozen names are forming the Merchant Customer Exchange (MCX). Members of the new joint venture, such as Walmart and Target, are unhappy at paying what they regard as excessive interchange fees to the existing card schemes run by Visa and MasterCard. They also do not wish to cede the potentially lucrative new m-payment and loyalty programme sector to Google Wallet or Isis, the venture backed by AT&T, Verizon and T-Mobile.
“MCX will leverage mobile technology to give consumers a faster and more convenient shopping experience, while eliminating unnecessary costs for all stakeholders,” said Mike Cook, corporate vice president at Walmart. The new platform would “employ secure technology to deliver an efficiency-enhancing mobile solution available to all merchant categories, including retail stores, casual dining, petroleum and e-commerce,” he added.
Terry Scully, Target’s president of financial and retail services, said that the group of retailers, which collectively account for about US$1 trillion in annual sales, wants to ensure that it has a say in the development of standards for m-payments.
Scully added that the group is in discussions with various financial institutions, technology companies and telecommunications providers on providing support for the new payment system, although he did not offer a date for when it would be introduced in stores.
The new venture follows an announcement earlier this month by coffee shop chain Starbucks that it is partnering with Square to process payments at its US stores and in May eBay’s PayPal unit announced deals with 15 retailers to use its system for mobile payments.
Retailers fear that they will be vulnerable to excessive fees if they do not have some influence in the developing digital ecosystem. The Gartner research consultancy predicts that the worth of mobile transactions will rise to US$600bn by 2016, from US$172bn this year, illustrating the potential in the field but only if consumers are not scared off by multiple, and confusing, rival offerings.
Rising interest rates, excitement around blockchain use cases and cross-border payments were all hot topics at this year's AFP conference in San Deigo.
Today CGI and GTNews have announced the launch of the fifth annual Transaction Banking survey report, which offers which offers critical insight into the corporate-to-bank relationship.
On-Demand Treasury Management Solutions continue to gain increased adoption in the US and EMEA regions.
The US dollar and debt yields falling on the North Korea missile test, treasury being a top target for cyber criminals and why treasurers aren't into real-time payments all hit the latest headlines in the world of treasury this week. Don't miss our ten top news stories from around the world.