Big Retailer's New Clunky Attempt To Kill Apple Pay And Credit Card Fees

[Xithras]

23. That's more marketing than anything.

CurrentC will probably end up being marketed to consumers as a free, universal app based debit card solution. On top of that, many retailers may deploy it with an initial discount package in order to drive its adoption. Because the credit card companies charge several percent in fees, the retailers can potentially offer an across the board 3%-5% discount to CurrentC customers, and the retailers will walk away with the same profit margins they have right now. Doing that will drive many consumers to the service without imposing any costs on the retailers, and promises increased profits over the longer term when adoption peaks and the discounts are phased out.

On top of that, WalMart is getting into banking. Because WalMart is one of the major investors in CurrentC, you can bet that they'll make it a central part of their adoption plan as they market their low cost bank to the poor.

But, above all, CurrentC's biggest advantage is going to be choice...or lack thereof. When you walk into their member stores (a list that currently includes everyone from Target, Sears, and Walmart to Exxon, Dunkin Donuts, Hobby Lobby, Kohls, Old Navy, Wendys, and a shit ton of other major retailers) and CurrentC is the ONLY mobile payment method they're accepting, you'll either use it, or you'll stick with your old and insecure cards. While CurrentC may not be as refined as either Apple Pay or Google Wallet, it's a huge step up from old magnetic swipe cards. There have been enough major data breaches lately that the security improvements it promises may be enough to drive its adoption all by itself.