Understanding the Merchant’s Dilemma
Discount rates can make life tough for those merchants trying to make a living. It’s the price they pay for processing credit and debit card transactions, and it doesn’t come cheap. These rates can vary significantly, typically falling between 1% to 5%. For instance, a high-end hotel doing $1 million in business with a premium card provider might find themselves shelling out a staggering $35,000 annually!
The Emergence of ApplePay
Back in 2014, ApplePay was touted as a solution to this thorny problem. Fast-forward to now, and it seems to have hit a few bumps on the road—like a small child attempting to ride a bicycle on a tightrope.
Retailers Say No Thanks
Recent reports suggest that many major retailers, including the likes of Walmart, Kmart, 7-Eleven, and Best Buy, are keeping ApplePay at arm’s length. They are gearing up to roll out their mobile payment app, CurrentC, set to launch next year.
The CurrentC Challenge
Designed by MCX, CurrentC aims to simplify the shopping experience for customers. If the rollout is a success, it will be made available to a staggering 110,000 merchants nationwide. Talk about ambition!
What MCX Says
“The CurrentC Network was built by leading merchants to simplify, enhance and secure their customers’ shopping experience.”
While their optimism is infectious, it’s clear they still have a long way to go. CurrentC is currently in private pilot mode, with national rollouts projected for 2015. Fingers crossed, anyone?
ApplePay’s Standing
Paint the picture: ApplePay only boasts 34 enrolled retailers, with eight of those being a single chain like Foot Locker. If you’re a sneakerhead, ApplePay seems cute, but until CurrentC gets off the ground, you’re likely looking at cards as your only option.
Revolution in Payment Options?
This could open doors for payment platforms like Coinbase and BitPay, which are itching to woo the public by highlighting the benefits of cryptocurrency payments—because who doesn’t want to pay for groceries with digital coins?
The Legacy Banking System’s Pitfalls
With both ApplePay and CurrentC still tied to traditional dollars, merchants and consumers alike won’t escape the lurking fees and potential pitfalls of the legacy banking system. Imagine trying to dodge raindrops while walking through a puddle—it’s tricky!
The Bitcoin Alternative
This is where Bitcoin enters the scene, like a superhero in a bewitchingly tight outfit. Using a Bitcoin wallet can mean fewer fees and zero exchange problems for international customers who dare to shop online at larger retailers.
The Grand Showdown
As a clever Reddit user put it, “It’s like a war, except nobody dies and the customers will probably win.” Sounds like a blockbuster! So, as we watch this mobile payment drama unfold, the real winners just might be the consumers.
