[NewsPoster]

Two major US retailers -- Best Buy and Walmart -- have announced that they will not support Apple Pay, according to the Wall Street Journal. The companies are instead said to be backing a payment service operated by Merchant Customer Exchange. The MCX technology requires only an app download, and is platform-agnostic, supporting older iPhones as well as Android devices. Apple Pay will be restricted to the iPhone 6, 6 Plus, and Apple Watch.

Apple has already lined up a number of retail partners, such as Macy's, Walgreens, Staples, and Subway. It needs as many as possible, though, to make Apple Pay successful. Pando Daily notes that the company may have timed the launch of its service to take advantage of regulatory changes which will force a number of US retailers to upgrade their point-of-sale terminals anyway.

By October 2015, companies that don't support EMV credit cards -- which have embedded authentication circuitry -- will be liable for the fraudulent use of lost, stolen, or fake cards. It may make sense, then, for retailers to simply upgrade to NFC-equipped terminals compatible with Apple Pay and/or other mobile payment platforms, like Softcard and Google Wallet.

[Charles Martin]

What a coincidence! Two of my least favorite merchants are the ones who will not support Apple Pay! Even less reason to ever use them!

[pairof9s]

Ditto, chas_m!

It's a bit short-sighted of them to imagine Apple Pay not expanding beyond just iPhone 6 devices in the near future as well as the even shorter shelf life of older iPhones now considering the enticing features of the iPhone 6. I'm not saying Apple Pay will definitely be a success, but they've certainly gotten their ducks in a row compared to the other solutions that seem to be floundering for leadership, direction and support.

[Inkling]

Apple is engaging in what economists call rent-seeking, meaning positioning itself to make money from the economics activities of others. (Think of a troll under a bridge.) Companies already tired of credit card fees may be balking at what Apple wants to charge. Walmart is also less interested in status seeking that retailers such as Macy's. It'll probably wait for a better deal.

[machobbes]

@inkling
As far as I understand ApplePay the merchants won't see any difference except for simpler transactions. Apple made the deals with the cc-companies to get a small cut of their fees.

[RightNow]

@inkling Actually, this isn't really related to your statement. Walmart is pushing another organization and thus isn't going to support a competitor in the exact same marker right out of the gate. IF it takes off, I'm sure they'll get onboard. In the meantime, Walmart's processing alternative is due out relatively soon. They're just looking for more ways to monopolize the market.

[MitchIves]

This will look like the wild west in the beginning... everyone trying to get in that end of the business. At some point it'll shake out and we'll be able to adequately evaluate which ones have the best security. The push to EMV cards will be the focus for awhile, and long overdue in the U.S., IMO...

[wireboy]

Retailers, at the bottom line, do what their customers tell them to do. If Apple Pay becomes something that customers like to do, and as a result something that impacts their experience, impression, feelings about a retailer etc., and this as a result guides even a small percentage of them away from a given retailer toward another that offers an experience that they prefer, watch how fast things change. It's all depends on how good Apple Pay turns out to be in practice.

[Charles Martin]

To be clear about one point: there is no technical reason why stores have to go with Apple Pay OR the Walmart alternative. They can support both, and other standards besides, which would give all consumers with any kind of card or smartphone their options. It all uses the same technology found in the forthcoming POS terminals being rolled out. This is just childishness from the consortium that wanted to impose its own standard and lock out everyone else.

[Mr. Strat]

I can go to Walgreens, basically a drug store, and they can scan my Passbook card. But if I have the misfortune to go in an inappropriately named Best Buy, mostly a technology store, they can't scan their Passbook card.

[FastiBook]

Worst buy & trashmart... who needs em.

[syzygi]

Bust buy shouldn't be picking sides against a technology company. Stupid move on their part.