Both CVS and Rite Aid blocked Apple Pay in all of its stores. The big retailers have effectively thwarted the new payment system nationwide. According to Time on October 27, 2015, a group of retailers intend to deploy mobile payment systems of their own.
The new way of paying for purchases uses near-filed communication or NFC to let users pay with their iPhones instead of using traditional methods such as cash, credit or debit cards. The intention is to make it even easier for mobile commerce to proliferate and add another very useful feature to the popular smart phone.
Apple Pay was first blocked by Rite Aid, then by CVS after employees got an email this past Saturday instructing them that customers could no longer use payment options such as Android’s Google Wallet or Apple’s new system. The retailers are teaming up with giants Wal-Mart and Best Buy to offer their own competing system currently referred to as Merchant Customer Exchange or MCX.
Even though neither retailer was named in the Apple Pay launch announcement, both were accepting it as a form of payment in their stores until recently. This appears to be a pre-emptive move to favor an in-house, not-yet-released payment system at the expense of customer choice and convenience.
Apple’s nascent mobile payment system is less than a week old and already facing major hurdles. According to The New York Times on October 27, Apple Pay was disabled over the past weekend.