Retailers still reluctant to use Apple Pay
Recently, Apple Pay has been introduced by the CEO Tim Cook and told investors that “2015 will be the year of the Apple Pay”. Though the app has been recognized and adopted by iPhone users, banks, and retailers, the app has not been able to reach far for all investors, not just yet.
Reuters Reporter, Nandita Bose recruited retailers to try out and let their customers make purchases with the Apple Pay. Reuters spoke to the top 100 merchants in the U.S., feedbacks show that only about half are accepting the Apple Pay this year, but many huge retailers that Apple wants to recruit are still skeptical about the matter.
Apple has been assessing the results and progress of the app through surveys and did some digging on the top 100 retailers in the U.S. from the National Retail Federations (NRF) list, 98 of the list were invited and Apple received detailed responses from 85, while simple responses came from 11 of them and the final 2 changed their minds and did not pursue with the survey.
The reasons that some merchants are reluctant to participate in the Apple Pay is the lack of information it can access from the customers, and the biggest reason that it would be is the Current C. Current C, a new mobile payment system that the Merchant Customer Exchange (MCX) has produced for the retailers that has been looking forward for before Apple Pay. Also, Apple Pay is not out of the market just yet, it has been good within the last six months as noted by Senior Internet Analyst ‘Steve Weinstein’ while Google wallet is slowly declining out of the picture.
While in the case of retailers, they know that Apple Pay is compatible with private label cards which might serve as an edge against Current C, one of the main reasons that they’re skeptical about it, is it removes their access to monitor and gather information from the customers especially their buying habits, unless from the credit card that it can gather the customer’s name, email address, and card number which enables the retailers to send promotions to the customers.
Overall, as Tim Cook indicates that Apple doesn’t want to be a company that peeks around the customers other private matters which could be the reason that other retailers are skeptical as of the moment. Though not just Apple Pay, companies that are accepting Current C that will also publicly launch later this year as cited by the MCX will also do a lot of cost for the installation of new backend systems for contactless systems.