Apple Pay, a mobile wallet system which has been highly anticipated by many, has been disabled by pharmacy giants Rite Aid and CVS in a move that may mean they’re looking to use a different mobile payment technology once it becomes available.
Rite Aid spokesperson Ashley Flower said that the company would no longer accept Apple Pay and that they are “still in the process of evaluating our mobile payment options.” Flower did not give a reason why, but analysts say it could be because they want to be able to offer CurrentC, a system which would give them freedom from credit card transaction fees but won’t debut until next year. But the move could prove damaging to business, according to some.
“We think consumers should have the ability to pay any way they want. Rite Aid and CVS have been accepting contactless payments for quite a long time. We look forward to them turning the functionality back on in their stores,” said Ed MdLaughlin of MasterCard.
Apple has not commented on the move by the companies, but a spokesperson says they are committed to bringing a safe and secure payment option to consumers.
“We are working to get as many merchants as possible to support this convenient, secure and private payment option for consumers. Many retailers have already seen the benefits and are delighting their customers at over 220,000 locations,” said Trudy Muller.
The incident comes nearly one year after retail giant Target suffered a massive security breach and millions of customers were informed that their credit card information may have been compromised over the busiest shopping week of the year. With Christmas shopping season just around the corner, many are bound to be wary of any new payment systems; however, Apple says consumer feedback to Apple Pay has been overwhelmingly positive.