Costco now Accepts Apple Pay, but Chances of Walmart Joining the Bandwagon are Slim
As Apple pay continues to gain popularity in the newly induction mobile payment competition race, other companies have decided to play ball. Recently Costco became the newest giant retailers in the United States to allow the customers to pay via Apple’s smartphone app.
That being said, there are still some giant retailers refusing to join the Apple pay bandwagon. One notable retailer is Walmart. Yes, the largest retail store brand in America.
The Costco Apple Pay partnership
As per the information from the National Retail Federation, Costco (which happens to be the 4th largest retailer in the United States, began accepting its customers to use Apple Pay first in its mega 530-odd store in the United States.
Notably, Costco has 750 stores located in North America and the rest of the world.
Additionally, the company has also stated that it has been working round the clock to enable mobile payments to become available in some of its gas stations as well.
Of note is that Costco now becomes Apple Pay’s largest partner, following 7-Eleven and CVS recently accepting the services of the mobile app.
Flexibility for customers
One analyst from the research company eMarketer, commented on Apple Pay’s recent partnerships, stating that the company has been industrious the last couple of weeks enticing retailers to have the Apple Pay app as an option when it comes to paying.
In the US alone, there are over 22 million users that access the Apple Pay app to make payments. However, eMarketer predicts that the company will experience a 9 percent growth, pushing that number to 24 million in 2019.
Additionally, Apple stated that it recorded over 1 billion transactions carried out by Apple Pay in the 2nd Quarter of 2018 alone. This translates to a 300% rise in the number of transactions compared to the number in 2017.
However, there is one catch when it comes to using Apple Pay to make payments at Costco. If you use a credit card, it’s got to be a Visa because Costco is currently in partnership with Visa and Citigroup.
As a matter of fact, the same condition will apply even when a customer uses other payment apps such as Google Pay or Samsung Pay.
So now that other giant retailers are following through, the big question still lingers; will Walmart join Apple Pay? It is highly unlikely.
In fact, in a statement released Walmart representatives, the company does recognize that there are other mobile payment options out there such as Apple Pay. However, Walmart has decided to stick exclusively to Walmart Pay as their accepted mobile Payment option.
So why is Walmart holding out this long? It all goes back to the collaboration deal that the retail store made with other retailers such as Target, Best Buy, and 7-Eleven to create a mobile payment structure known as CurrentC (which mind you never had an official launched).
That being said, the technology was later acquired by JP Morgan to be used in developing the Chase Pay platform.
The Success of Walmart Pay
When the collaboration between the giant retailers capitulated, Walmart decided to make its own mobile payment app.
Walmart Pay first began operation in December 2015 at select stores in Bentonville in close proximity of the company’s headquarters. The app was then made available to all Walmart customers in July 2016.
For customers to access Walmart pay, they have to open the app while standing on the checkout line, and the cashier will finalize the traction by scanning a QR code.
In turn, the transaction is then billed to the credit card that has been linked to the app, and an email of the receipt is then sent to the customer.
Walmart, like Starbucks, has gained tremendous success with its mobile payment platform. One of the reasons for this is because it employs an effective reward program for its customers.
Additional unwanted fees
Additionally, another vital reason why Walmart is reluctant to employ Apple Pay is that it is not so enthusiastic about the 0.15 percent cut that the bank makes with every transaction.
Being that it is the biggest American retailer, such a mild cut to the customer translates to massive amounts of money lost by Walmart to banks during the transaction process.
More in Business
Two Lucky Players Win $687.8 Million Powerball Jackpot – But How Much Money Are They REALLY Taking Home?
Trying your luck in the lottery is not uncommon in the United States. Millions of people make small sacrifices and buy lottery tickets...November 12, 2018
The Top Earning Female Celebrities This Year May Shock You
In the world full of fame and glam, it is no doubt that some of the most sought-after celebrities would gain...November 12, 2018
These Celebrities May Be Cheaper Than You — Here’s Why
With all the fame and fortune you would think that most celebrities would live in a mansion, own the most expensive...November 12, 2018
Find Out How Social Media Can Ruin Your Insurance
Social media has taken over the world. Almost everyone owns at least one social media account since it has become a...November 12, 2018
Why Traditional Career Counselling Methods Might now be Very Useful and How They Can be Changed
The professional world is constantly changing. Workers from previous generations often got jobs as soon as they graduated from college and...November 12, 2018
Amazon Superseded by Tech Rival as Second Most Valuable Company in the World
It was a disappointing week for Amazon whose shares took a sharp downturn after dismal quarterly returns. The ecommerce giant has...November 12, 2018
Delaying Homeownership Could Hurt Millennials’ Financial Security After Retirement
Millennials have plenty of things to worry about including student loans, career, love life, and much more. However, there’s one thing...November 12, 2018
Target Just Recalled its Popular Summer Wear and Here are All the Details
Target’s latest batch of Piping’s ‘wave thongs’ were selling like hot cakes these past few weeks but the retail giant has...November 12, 2018
Remodeling With a Credit Card May Not be Such a Good Idea — Here’s Why
Getting your house remodeled could be a good and a bad thing. It is of course good since that means you...November 12, 2018