MCX Merchant Group to Enable Payments Through Individual and Core Apps

NFC Times Exclusive: The U.S. MCX merchant consortium will introduce its own mobile-commerce app, as well as making much of the same functionality available in individual apps from its members–including a proprietary mobile-payments service based on QR codes.

The details have emerged during recent appearances by representatives of the merchant group, which includes such large U.S. chains as Wal-Mart, Target, Best Buy and Gap Inc. But MCX still declines to release many specifics, including exactly when it plans to launch its first pilot and what it will call its core MCX app. 

MCX, which boasts that its members have a combined 700 million proprietary “payment loyalty” accounts and 90,000 locations in the U.S., plans to use a core mobile-payments platform, enabling consumers to make purchases within the individual store app or in the MCX app. As already disclosed, MCX merchants will use QR code technology at launch, though are open to other technologies later. 

“We’ve got the Wal-Mart app; we’ve got a Sam’s Club app. I cannot imagine that we would go to these millions of customers that are using our apps today, and say, now you’re going to have a two-app experience,” said Jamie Henry, senior director of payment services at Wal-Mart. “You can still use the app for what you’re using it for in Wal-Mart or Sam’s Club today, and when you go to pay, you need to close up that app and open this other third-party app. That’s just not going to work.” 

In this article:

Words: 2,000

Among Topics Covered:
•Relationship between individual merchant apps and MCX app
•Proprietary payments service
•QR code-based payments
•MCX’s positions on priorities for transaction fees, protecting data and controlling the user experience.
•Question of common loyalty scheme 

Sources Quoted:
•Jamie Henry, sr. director, payment services, Wal-Mart
•Jim Macari, director, innovation and product development, Phillips 66
•Kate Jaspon, VP, controller and corporate treasurer, Dunkin’ Brands
•Dodd Roberts, sr. executive, MCX
•Mike Church, VP, interactive ecosystem, Darden Restaurants 

Among companies and organizations mentioned:
MCX
Wal-Mart
Phillips 66
Dunkin’ Brands
Darden Restaurants
Barclaycard US
Gemalto
Visa
MasterCard 

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