It looks like Apple has to redo its projections of revolutionizing the mobile payment system with its 'vaunted' Apple Pay.
Right on the first week from its official release date, Apple Pay has hit a stonewall as two of America's major drugstore chains pulled the plug on the system, reports Bloomberg.
CVS Health Corporation (CVS) and Rite Aid Corporation (RAD) reportedly disabled the contactless payment system on their drugstore chains last week supposedly to focus on an own system, the site pointed out.
Opptrends however reported that it's not just the two major US drug retailers that Apple has to contend with.
In addition to CVS and RAD, The Verge details that a number of significant US merchant retailers including Wal-Mart, Kmart, 7-Eleven, and Best Buy have all disabled their near field communication or NFC readers in their stores to block Apple Pay and other mobile payment systems including Google Pay.
The six retail heavyweights and the two drug retailers are part of a consortium established two years ago which is said to be developing a competing mobile payment solution, notes Opptrends.
Called CurrentC, the consortium is scheduled to launch their own mobile payment system next year and thus have no intention at all to support Apple Pay or other mobile payment systems, The Verge said.
Opptrends explains that Current C will not use the NFC. Instead it will use a Quick Response Code (QR Code) and consumer payments will just be drawn from their accounts directly like a debit card.
The use of their own payment system will also mean savings for the retailers as that would mean reduced credit card charges. Payment cards or prepaid cards can be used for mobile payment instead, the site said.
While Apple Pay enjoys the support of major financial institutions and credit card companies, CurrentC, on the other hand, has the backing of major retailers with presence in 110,000 merchant locations all over the US, Opptrends pointed out.
Bloomberg reported that sources inside the American tech giant has disclosed that Apple now accounts for more than 80% of US credit card purchases.
The company wanted Apple Pay to capitalize on this crucial statistics by jumping on the existing payment systems. That's in addition to Apple also earning from fees to be levied on credit card companies, Bloomberg said.