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MCX Goes On the Defensive, Offers New Details

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Oct 29, 2014, 1:57 PM
> First and foremost, MCX said participation in its
> payment service is voluntary. When merchants choose
> to work with MCX, they choose to do so exclusively.

So CVS and RiteAid chose to use MCX, purchased their terminals and licensed their processing system-- which included NFC-- and then when MCX offers an alternate AS YET UNDEPLOYED solution, MCX has the right to disable functionality their customers paid for.

> Importantly, if a merchant decides to stop working with
> MCX, there are no fines.

Except if you happen to own thousands of stores with tens of thousands of terminals that you already purchased. Then you have to pay to replace the whole system.

I call bullshit.

Oct 29, 2014, 3:19 PM
CVS and RiteAid bought their hardware from a different vendor than MCX. MCX didn't sell them something with NFC. I've used some of the new terminals that some of these merchants have recently upgraded to accept chip cards, etc. and many of them don't have NFC.

The death of this system is going to come from the lack of having either NFC or a scanner on the terminal to scan the QR code. I think when you have to hand over your phone to the high school kid checking groceries at Hy-Vee, etc. that will cause most people to choose another payment method. They, like a few other of their merchants, don't even have scanner guns. Even if the check has a gun to scan the QR code with, it will be a less efficient method since the customer is unabl...

Oct 30, 2014, 2:45 PM
Thank you for the clarification-- I was under the assumption that MCX was providing the entire POS system, including the card terminals.

It still does not make sense for CVS and RiteAid to invest in tens of thousands of NFC capable terminals that will no longer be used and will likely be replaced (to avoid pissing off Apple Pay and Google Wallet users).

What will kill CurrentC is:

- Store card and checking only (no credit / debit card support)
- Dual barcode scanning
- Huge infrastructure change for fixed base scanners at grocery stores and large volume retailers.
- All the POd Google Wallet and Apple Pay users who will boycott the system out of spite.

Oct 31, 2014, 8:58 AM
MCX appears to be under the delusion that eventually they'll sign up a few major credit card issuing banks to be part of the system. However, since the system is geared towards avoiding interchange fees completely I don't see what's in it for any credit card issuing bank to join. Those fees are their greatest source of revenues. Without them it simply isn't economical for them to issue credit cards at all. The merchants I'm sure see the lack of interchange fees on their private label cards as a sign it can be done; however in that case the merchant is profiting from the increased sales caused by allowing credit. There would be absolutely nothing in it for a Citi or Bank of America to join and process their VISA and MasterCard holders tr...

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