Apple’s Chief Executive Officer Tim Cook is extremely happy with the way the world is reacting to his company’s new service Apple Pay. Cook informed that over one million credit cards have been activated on Apple Pay within just three days of its launch last week. He added that with so many activations, the new service has become the biggest mobile-payment platform the world currently has.
Cook said that reports suggesting that retailers like CVS Health Corp. and Rite Aid Corp. are not supporting Apple Pay in their stores resulted in a battle of some sorts.
Neither of these two companies joined hands with Apple’s network; but, last week a small group of customers found that CVS and Rite Aid stores are allowing use of the new service. However, both retailers were prompt to disable that functionality; the reason behind their action is not yet known.
CVS and Rite Aid are not the only stores to not support Apple Pay; the American multinational retail corporation Wal-Mart Stores Inc. and the American multinational consumer electronics corporation Best Buy Co. have also not jumped into Apple new mobile payment network. All these four companies are instead part of the mobile technology group Merchant Customer Exchange (MCX).
MCX was founded by an association of US retail firms. Its mobile payment system operates using software compatible to both Android and iOS phones. This service, however, is currently available only in pilot mode and will not be released nationally before next year.
While there are chances that MCX’s mobile payment service offers competition to Apple Pay, Cook is confident that his company’s offering is here to attain long term success. He said that to enjoy relevance as a merchant or retailer one first needs to be loved by his/her customers and added that his company will surely manage to earn that with Apple Pay as other than being the first of its kind, this mobile payment system is private, secure and easy.
Apple’s payment service was released on October 20 and initially it is allowing US consumers to make purchases from over 220,000 stores. To use the service, users will only need to have a latest iPhone.
The Cupertino-based tech giant has signed contracts with six big credit-card companies, who together account for around 83% of all credit-card deals taking place in the US. That’s not all; by the first quarter of 2015, we’ll see Apple joining hands with 500 more financial institutions. The iPhone maker also has top credit card networks American Express, MasterCard, and Visa by its side.