Apple (NASDAQ AAPL) Stock News: Apple Pay Faces Risk as Some Start Rejecting the System

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Apple Pay, the mobile payment service of Apple Inc (NASDAQ AAPL) is facing a risk after CVS Health Corp (NYSE CVS) and Rite Aid Corporation (NYSE RAD), the two major pharmacy chain operator in the United States rejected the system. Wal-Mar Stores, CVS Heakth, Rite Aid, Best Buy and 50 other retailers are working on their own mobile payment system called CurrentC.

According to Bloomberg Businessweek, the pharmacy chain operator removed Apple Pay and other mobile payment systems such as Google Wallet and Softcard. CVS Health Corp (NYSE CVS) has not released any explanation regarding its decision.

On the other hand, Ashley Flower, the spokesperson for Rite Aid Corporation (NYSE RAD) explained, “We are continually evaluating various forms of mobile payment technologies, and are committed to offering convenient, reliable, and secure payment methods that meet the needs of our customers.”

Apple Inc (NASDAQ AAPL): Apple Pay

The Bloomberg Businessweek noted that convenience, reliability or security were not actually the primary reasons behind the rejection of Apple Pay. The media outlet said an increasing competition between credit card companies and group of merchants led by Wal-Mart Stores, Inc (NYSE WMT) is about to happen.

The retail giant along with CVS Health Corp (NYSE CVS), Rite Aid Corporation (NYSE RAD), Best Buy Co Inc (NYSE BBY) and 50 other retailers are working on their own mobile payment system called CurrentC.

Apple Pay is designed to work with U.S. credit card companies such as American Express Company (NYSE AXP), Visa Inc (NYSE V) and Mastercard Inc (NYSE MA).On the other hand, CurrentC works independently without the credit card companies, which is more beneficial for retailers as they will no longer pay swipe fees.

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Apple Inc financial news (NASDAQ AAPL)

Tim Cook, CEO of Apple Inc (NASDAQ AAPL) emphasized during the launching of Apple Pay that mobile payment systems failed citing the reason that they were built to serve the business models of their developed instead of providing useful experience to customers.

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