CVS, Rite Aid blocking Apple Pay

November 5, 2014

Apparently, not everyone is excited about Apple’s new smartphone payment system-Apple Pay. Both CVS and Rite Aid recently both blocked customers from using Apple Pay at its stores, as well as the tap-to-pay mobile payments systems Google Wallet and Softcard.

Apparently, not everyone is excited about Apple’s new smartphone payment system-Apple Pay. Both CVS and Rite Aid recently blocked customers from using Apple Pay at its stores, as well as the tap-to-pay mobile payments systems Google Wallet and Softcard.

A Rite Aid spokeswoman Ashley Flower toldBloomberg Businessweek, “We are continually evaluating various forms of mobile payment technologies, and are committed to offering convenient, reliable, and secure payment methods that meet the needs of our customers.”

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CVS has not offered an explanation. And one law firm has launched an antitrust investigation, claiming that the two companies may have violated antitrust laws by collusion to boycott competing payment systems simultaneously.

Industry analysts speculate CVS and Rite Aid have a clear motive to reject Apple Pay and the other smartphone payment systems: the two companies are part of a group developing its own smartphone payment system that would cut out credit card companies.

According to numerous reports, MCX is developing a mobile payment system called CurrentC. Rite Aid, CVS, Walmart, Best Buy, and about 50 other retailers prefer that system because it eliminates processing fees from credit card companies.

Apple Pay, Google Wallet, and Softcard work in conjunction with the major credit card companies, which charge merchants a swipe fee whenever a payment is processed. CurrentC is not expected to be ready until 2015.