If you are interested in the payments market, this is a good read. But the bottom line here is this:
I was pleasantly surprised at how easy it was to pay with CurrentC at Target; however, I’m not sure that I could recommend CurrentC over NFC-based systems like Apple Pay because of the fraud and privacy concerns. Ultimately the retail customer’s money is on the line in the event of fraud, which is worrisome in light of the lackluster security record of many retailers (Target, 7-Eleven, and Michaels) in the MCX consortium.
Given that Apple Pay exists as a model, why would any financial organization put forward a payment model that is not at least as secure as Apple Pay?
[H/T Robert Davey]
Apple Pay takes privacy to such a high level that, retailers lose their ability to “send pregnancy related coupons to a teen girl before her father does”.
Hence, CurrentC
“why would any financial organization put forward a payment model that is not at least as secure as Apple Pay?”
Simple, it’s not a “financial organization” behind CurrentC. It’s a retailer organization. Their motive is to avoid bank fees that the credit/debit card system has, not security.
“Ultimately the retail customer’s money is on the line in the event of fraud”
Just one story about someone losing their entire bank account due to this will sink CurrentC. It could lead to direct liabilities to the CurrentC retailers that would make the bank fees look tame in comparison.
Between the delays in going live, NFC payment systems getting a lot of positive press, and fear of an uncertain system, retailers have been dropping out of CurrentC.
Wal-Mart is originator of the CurrentC idea, it all boils down to wether or not they actually use it successfully. If they can’t eat their own dog food, no other retailer will.
Best case scenario, CurrentC ends up being little more that a negotiating tool for the retailers to get a better deal out of the banks on fees, and this never really goes “live”.
Exactly right. And most consumers would consider the privacy a feature, thus CurrentC’s game here has to throw as much FUD as possible at secure solutions like Apple Pay.
I’m expecting a LOT of FUD.
The weird part of this is that Walmart has their own credit card. If they want customers not using other credit cards, it seems a much more sane approach would be to increase the perks for using their own card.
I know the perks are probably expensive enough already, but compared to the development of this and its deep perks? Seems spending this money to make the Walmart card the most attractive card to use (and as a natural consequence, Walmart a more attractive place to shop) would be a better use of money.
My expectation: CurrentC struggles to gain a significant user base; MCX begins advertising their service and slinging mud at NFC; advertising fails to sway public opinion and build a user base for CurrentC; Walmart holds out in offering NFC but most other retailers see the writing on the wall and adopt NFC terminals; Walmart stands strong for 4-5 years but eventually realizes CurrentC was DOA and begrudgingly adds NFC terminals around 2020 to keep from losing customers.
Here’s what I don’t get… who in the hell would ever fill out that form willingly? I mean, if you have a mobile phone you probably have a credit card and why would you give all that information up so yo could pay with your phone instead of simply continuing to use your credit card?
Apple Pay (and I assume Android Pay) is pretty much like your credit card – take something out of a pocket, ‘swipe’ it and done. You not only incur no extra risk, you avoid it.
This is DOA. T he amount of personal info they require is staggering and will put off most people. Another problem is usability. I had to laugh at the line that it was easy to pay with current C. As the guy describes it, you have to open an app, bring up a QR code scanning window and scan the code. I do this on occasion with my Shoppers Drugmart iphone app and there is nothing user friendly about, it simply sucks. The only way they might reel some people in with this is by offering constant huge discounts. but those can not be sustained. And even in the unlikely scenario this gets any steam for a while it will be steam of Titanic speeding towards an iceberg. Cause it can only last till Target gets hacked again (and it will) and poor saps using CurrentC get all their financial info stolen.
Walmart probably isn’t the issuer of the card, some partner bank is. Walmart may not be getting much out of that deal.
Also, being offered “yet another credit card” isn’t that appealing to people.
Heh. I don’t know what they’re getting out of the deal, but it’s enough that they “encourage” their cashiers to ask every time if people want to sign up and announce every time someone signs up over the intercom.
…They’re clearly whoring themselves out. I just don’t know if they’re expensive or cheap. 🙂
One of the perks is 1.25% rewards in store. Using it as a store only card isn’t hard.
…and yes, I know most people are not that rational. No argument. 🙂