Best Buy Reverses Course on Apple Pay

Best Buy will begin accepting Apple Pay in stores this fall, reversing its previous decision regarding the digital payment system.The move is surprising because Best Buy is a member of the Merchant Customer Exchange (MCX), a consortium of retailers and food chains spearheaded by Walmart that this summer plans to roll out a mobile payment solution dubbed CurrentC that is expected to compete with Apple Pay.A Best Buy spokesperson told Re/code the retailer continues to invest in MCX but did not confirm it would accept CurrentC once the payment method launches. A day after Best Buy's announcement, MCX chief executive officer Dekkers Davidson resigned, fueling media suggestions that MCX is a sinking ship. One of MCX’s main goals is to create a mobile wallet offering payment methods that are less expensive for retailers to process than big-name credit cards. Apple Pay, meanwhile, favors traditional credit and debit accounts.MCX members CVS/pharmacy and Rite Aid received much media attention when they turned off support for Apple Pay after briefly accepting it in their stores when it launched last fall. According to reports, members of the consortium have agreed not to accept Apple Pay in their stores and signed exclusivity pledges that will expire in the second half of 2015, though MCX member Meijer is among retailers accepting Apple Pay at its brick-and-mortar locations.At participating stores, users of newer models of the iPhone can pay for items by placing their phone or Apple Watch near the checkout terminal. The system also lets iPhone owners pay for purchases made through partnering apps by using payment information on file with Apple, eliminating the need to type in credit card or shipping information for each purchase.Best Buy has already begun accepting Apple Pay in its apps — a capability Target, another MCX member, has offered since Apple Pay's launch — and will welcome the payment method in stores this fall. It is unclear if other MCX retailers will follow the consumer electronics chain's lead.In addition to Meijer, Apple Pay is currently accepted at the brick-and-mortar locations of retailers including Acme, Toys “R” Us, Bi-Lo, BJ’s Wholesale Club, Duane Reade, Foot Locker, GameStop, Jewel-Osco, Macy’s, Office Depot, Petco, Sports Authority, Staples, Star Market, Walgreens, Whole Foods Market and Winn-Dixie.Consumers, however, do not seem convinced that any type of mobile wallet is easier or better than simply swiping a card. (See Related at right for more.)

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