The reason for the disabling of Apple Pay was not immediately clear though it might have to do with the two companies’ contractual agreement with Merchants Customer Exchange (MCX), reports The NY Times. MCX a consortium of merchants that includes Rite Aid and CVS, has a rival system, CurrentC. Once it becomes available in 2015, it will be linked to a consumer’s debit account.
“By bypassing credit card companies, MCX merchants could potentially save money on the fees they pay per transaction,” reports the Times. Already MCX retailers include major chains like Best Buy, Gap Inc. and Walmart.
Apple Pay has its fans. And some observers complain that CurrentC is more difficult to use than Apple Pay, which does not ask customers to unlock their phones or open an app. Plus they add it is far more complicated than paying with cash or a credit card.
Wal-Mart is another retailer convinced MCX’s CurrentC will be a better payment system. In fact, Wal-Mart is a leader of MCX and they are currently not accepting Apple Pay.
Some consumers even became skeptical after a major Apple Pay glitch with credit cards issued by Bank Of America. Some BoA customers who used Apple Pay recently were double charged.
Despite a few naysayers and a glitch, Apple CEO Tim Cook says Apple Pay is already a big success. According to him, more than a million people have activated Apple Pay accounts, making it a hit. USA Today notes that that’s a relatively small number, but it is a strong start.