Some U.S. retailers like drugstore chains Rite Aid and CVS are rejecting Apple Pay, according to The Inquirer. The NFC payment scheme, which Apple Pay is based on, is reportedly set to be replaced by an alternative mobile payment system based instead on QR code.
This alternative payment platform is named "CurrentC" and is being developed by a mobile tech company called Merchant Customer Exchange.
It is said that CVS Health Corp. and Rite Aid Corp. are part of a consortium which is currently developing competing mobile payment technology to rival the NFC payment system that both Apple Pay and Google Android use. Aside from the two drugstore chains, other retailers such as Best Buy and Walmart are also shunning Apple Pay.
"Hundreds of other retailers have backed the CurrentC system, including Gap, Old Navy, 7-Eleven, Kohls, Lowes, Dunkin' Donuts, Sam's Club, Sears, Kmart, Bed, Bath & Beyond, Banana Republic, Stop & Shop and Wendy's," adds The Inquirer.
Both drugstore companies are among the 220,000 U.S. retailers that already have technology set up to accept mobile purchases through smartphones. These two retailers, however, were not among those specifically mentioned by Apple as being ready to accept Apple Pay.
A leaked memo reportedly from Rite Aid reveals the company's involvement with a competing payment system, reports SlashGear. In the memo, Rite Aid tells employees:
"Please note that we do not accept Apple Pay at this time. However we are currently working with a group of large retailers to develop a mobile wallet that allows for mobile payments attached to credit cards and bank accounts directly from a smart phone. We expect to have this feature available in the first half of 2015.
If customers attempt to pay for a transaction with Apple Pay, a message will prompt both customer and cashier for a different form of payment. Please instruct cashiers to apologize to the customer and explain that we do not currently accept Apple Pay, but will have our own mobile wallet next year."