Will Anyone Want CurrentC? Probably Not
CurrentC is now being tested at some retail locations in Minnesota. Before CurrentC can rolled out, point of sale systems at retailers need to be modified, which can take time and explains the early 2015 launch date cited in the internal Rite Aid memo obtained by SlashGear.
CurrentC doesn’t rely on new technology like NFC or Bluetooth LE, so it will likely be compatible with older iPhones and Androids, unlike the iPhone 6 and 6 Plus-only Apple Pay. That could give it some broad appeal. MCX will also tout the automatic discount and loyalty programs that could appeal to bargain hunters.
The problem with the CurrentC system, as John Gruber points out, is that it’s based more around solving the retailers’ credit card fee problems than the consumers’ payment friction problems. Users have to open their phone, open CurrentC, open the scanner, scan the code from the cashier, and wait for the transaction to be confirmed. That may present more friction than simply paying with a credit card, and it’s certainly harder than a quick Touch ID verification and tap of Apple Pay.
I assume we'll end up with some kind of universal mobile wallet situation at some point. But I'm having trouble seeing people taking the time to get a special code, open an app, photograph the code with their phone, and wait to see if it works, just to save the *retailer* credit card fees. How is that easier than sliding / waving a card or handing over cash?
Not to mention giving all those retailers direct ACH access to their bank accounts. Wouldn't a breach of an ACH-based system mean the hackers could actually draw money directly out of the account? Bit scarier than fraudulent cc charges.
I don't know if Apple Pay is going to work either, but an NFC or Bluetooth system utilizing a thumbprint seems both easier and more secure. Either way, proactively disabling existing equipment so it won't work with Apple Pay to force people to use a clunkier system designed solely to save Walmart and Best Buy's credit card fees just seems spiteful and manipulative.
Hope they eat dirt on this.
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