- Walmart announces Walmart Pay
- Walmart remains supportive of MCX and is still part (my first hand knowledge)
- Walmart Pay does not use Paydiant, but is using QR code capture (my first hand knowledge)
- Currently Walmart Pay is not tokenizing (my first hand knowledge)
- Walmart has highly successful mobile app
- Walmart is #2 online retailer (AMZN $89B, WMT.com $12B)
- Walmart.com has 30M+ Cards on File (my estimate)
- WMT almost every retailer in loyalty
- Walmart and Visa/issuers have reached some sort of swipe fee settlement (~$5B)
- Walmart does not have a loyalty program, but rather ELP
- QR Codes are not an approved “card present” delivery channel and thus are CNP
- MCX is operational, but Target and WMT are the clear leaders
- ApplePay is making inroads to CVS, BestBuy and other MCX Participants
- JPM gave WMT/MCX flat fee payments 2 months ago for ChasePay
As I’ve stated before, there are 3 industrys that enable mobile payments: grocery, gas, transit (frequency of use). Given WMT’s scale, consumer loyalty, mobile success, cards on file and acceptance cost efficiencies this is a no brainer. My summary is that they have used their unique assets in a new and innovative way, with superb timing.
Walmart’s payment acceptance advantages (Settlement, VPP, and Issuer Negotiated discounts) give it the ability to accept payments at a lower cost than any other retailer. Why would it want to subordinate these advantages within a consortium of competitors?
I do think that MCX has potential, but most likely it will be as a decoupled debit facility, or some kind of coupon issuance redemption infrastructure. 4+ years is a long time for a consortium. In this span, Walmart and Target have accelerated their lead beyond the other retailers in mobile, payments, loyalty. Yes WMT is still in MCX, and so is target +++ but the brain trust behind MCX is no pushing objectives within their own community (see blog). There is still great opportunity for collaboration, but each participant has needs to select and monetize these collaborative partnerships differently (a focus for us at Commerce Signals).
- “accept all cards” in the WMT wallet. This is a BIG WIN for V/MA.. but it came at the BIG expense of the ~$5B settlement (V alone). Remember MCX was dead set against use of anything but ACH.
- QR codes. The use of a QR code means transaction will be treated as CNP. V/MA were surprised by today’s announcement too. WMT does not have the same incentive to tokenize (given their rates and their cards on file (COF)). I would expect to see them switch when they new card holder rate tier appears (in next 2 months for Summer deadline). Funny that WMT, Amazon, Apple, Google, Samsung will all be pushing the banks on tokenization.
- Chase Pay.. how brilliant is this timing.. get chase to give away to farm (to WMT and Target) in hopes of being perceived as a payment instrument for MCX… then pull away and keep all the new discounts. Too funny.. holy crap every retailer should go by mike cook and his team a beer for that one.
- MCX.. still alive..? doing what? While it was very polite of WMT to show its continuing support.. I think the MCX team must be crystal clear on what it will do for retailers. Retailers should want a common facility for payment/mobile things.. but wow does this team need retooling
- Paypal.. I wonder if this is why the Paydiant team wanted to sell.. Not a great thing for my friends there. But I’m starting to see some new opportunities for them.. They are a natural alliance partner of merchants.. and the merchant’s competing consortium is not moving the ball. Would be cool if Paypal could partner with an acquirer to kill chasepay.