Thursday, October 23, 2014

Rite Aid A Big Loser In Apple Pay Users If Reports Are True

There is a growing number of posts and tweets that Rite Aid as turned off a feature that allow Apple Pay to go through after initial tests on Monday demonstrated that Apple Pay works there.  No official reason has been provided but some suggests that this is because Rite Aid is support a rival payment system that probably give companies that back it, Rite Aid, Walmart, Best Buy, and others, more control over customer data and not having to share a small cut with credit card and banks.

Here's the thing.  There is a CVS right by my house.  Oh, a Walgreen too.  And where I jog, there are other places where  I know accept Apple Pay.  So, what do I if I've just got my iPhone 6 Plus with me and not my wallet (I usually carry $20 with me for emergencies when I'm walking about in my neighborhood) and I need a cold drink? 

Not Rite Aid I can tell you that. 

This is what I predict will happen in the next six months. Some Apple Pay (maybe Google Wallet) holdouts will capitulate, especially those who are facing stiff competition from the likes of Amazon (yeah, I'm talking about you, not-so-Best Buy) as cash-rich Apple users go places where their new favorite payment method is accepted. 

On top of that, retailers will be facing financial pressure either from Holidays shortfall or shareholders to accept Apple Pay from their savvy iPhone shoppers.  There are going to be some who are in denial and will continue to see their business go to rivals who do accept Apple Pay. 

Maybe it'll be a good idea to keep a running tab on who is doing well and who are not based on whether they are Apple Pay partners. 

Source:  Josh Hudnall.

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