Could it end up being a fight reminicent of the VHS vs. Beta battle years ago?
A group of big-name retailers are getting together to create a method for people to pay for purchases with their smartphones. Wal-Mart, Best-Buy Co. and Target Corp. are three of the companies forming Merchant Customer Exchange, a company to develop a mobile application that would be available for almost every smartphone.
Mark Williams, president of financial services for Best Buy, said, “As merchants, no one understands our customers’ shopping and payment experience better than we do, and we’re confident that together we can develop a technology solution that makes that experience more engaging, convenient and efficient.”
The problem is that there are already at least six competing applications out there. Starbucks, which has its own system now, recently teamed up with Square to use its payment app. Google has one for some Sprint phones; Verizon Wireless, AT&T and T-Mobile USA have their own platform; Visa and Mastercard each have their own design and eBay even has a payment service.
Eventually there is going to have to be one platform that eveyone can use everywhere in order for this concept to succeed. But are all these companies willing to work together or is it going to be survival of the fittest?
Merchant Customer Exchange may have a good chance of being that survivor. Other companies that have signed on are 7-Eleven, Inc., Alon Brands, CVS/pharmacy, Darden Restaurants Inc., HMSHost, Hy-Vee Inc., Lowe’s Cos., Publix Super Markets Inc., Sears Holdings Corp., Shell Oil Products US, and Sunoco Inc. The group adds that even more members will be joing in the coming months.Warren Mills is the webmaster for WTHR-TV. He has been building and working on web sites since the mid-1990s.