Comments on: Apple vs. MCX part II – Crash course

By: Tim Nash

Tim Nash — Thu, 13 Nov 2014 09:23:29 +0000

When Apple Pay supports customer loyalty programs, MCX retailers will find it cheaper and more effective to incentivise customers through those programs to use Apple Pay with their bank debit cards. The retailers should encourage use of debit cards as well for non iPhone customers – Walmart is already fairly successful with this. So Apple Pay will get the reach anyway and MCX will wither on the vine, as it is a more expensive solution.

By: windsorr

windsorr — Thu, 13 Nov 2014 07:33:07 +0000

Agree I think MCX loolks very precarious.
I dont agree. I think Apple does have an incentive to accept MCX and that is reach. If MCX works on Apple pay then it will have the tacit bakcing of a lot of retailers and thats good.

By: Tim Nash

Tim Nash — Tue, 11 Nov 2014 09:29:08 +0000

MCX is dead as soon as Apple Pay integrates customer loyalty programs. It will then have no advantage to the member stores until the costs of running MCX are below credit card transaction fees. As MCX relies on the use of Automated Clearing House fees for electronic billing and banks lose money on this, they have no incentive to accept an untried system like MCX. Also, because it is untried and therefore probably more vulnerable to fraud, Apple Pay also has no incentive to accept MCX.