Apple CEO Tim Cook Fires Back as Retailers Block Apple Pay

Advertisement
By Reuters | Updated: 28 October 2014 11:53 IST
Apple Inc CEO Tim Cook fired back at CVS and Rite Aid on Monday after the drugstore chains blocked the iPhone maker's mobile payments service, saying there were plenty of other retailers around the world to sign up.

Apple Pay launched about a week ago and saw more than a million credit cards registered over the first 72 hours. It already totes up more transactions than all other "contactless" payment methods combined, Cook said, citing Visa and Mastercard data.

Such services, through which a user pays by holding a smartphone close to a specially designed terminal, have failed to catch on in the United States despite the backing of Google Inc and other influential players.

News emerged over the weekend that the two retailers had opted out of Apple Pay in favor of a rival system that roughly 50 chains, including Wal-Mart and Best Buy, are developing for in-house use."We've got a lot more merchants to sign up, we've got a lot of banks to sign up and we've got the rest of the world," Cook told the Wall Street Journal Digital Live conference, in the company's most extensive comments on the blockade so far.

Advertisement

In launching Apple Pay, the iPhone maker hopes to lock in more customers for its mobile devices by enhancing their overall utility. Industry experts say it stands a chance of becoming the first widely used payments feature on smartphones.

Advertisement

CVS and Rite Aid have not explained their surprise move.

But the driving force behind developing a retailer-owned mobile payment solution is to avoid paying credit card transaction fees to card companies like Visa and Mastercard, analysts said. Fees range between 2 percent and 3 percent of costs per transaction.

Advertisement

Rite Aid stopped accepting Apple Pay last week at its 4,572 stores. Spokeswoman Ashley Flower said the company was evaluating various forms of mobile payment technologies.

CVS did not respond to queries seeking comment but a visit to two of its stores showed that the NFC (Near Field Communications) reader on which Apple Pay was used had been deactivated.

Advertisement

It remains to be seen, despite early signs of success, whether mobile payments will become widely adopted.

Cook argued on Monday that Apple Pay offered better security and privacy than competing services, and that retailers risked alienating customers by limiting choices at checkout.

"It's a skirmish," Cook said in response to a question about the retailers' moves.

"Merchants have different objectives sometimes. But in the long arc of time, you only are relevant as a retailer or merchant if your customers love you."

© Thomson Reuters 2014

 

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.

Advertisement

Related Stories

Popular Mobile Brands
  1. Best Diwali 2025 Wishes, Quotes, and Facebook Statuses to Share
  1. Mysterious Asteroid Impact Found in Australia, But the Crater is Missing
  2. Thanal Comes to OTT: Everything You Need to Know About This Tamil Action Thriller
  3. Madam Sengupta Is Now Streaming: Know Where to Watch This Bangla Crime Thriller
  4. Ryugu Samples Reveal Ancient Water Flow on Asteroid for a Billion Years
  5. Scientists Create Most Detailed Radio Map of Early Universe Using MWA
  6. Mayor of Kingstown Season 4 OTT Release: Know When, Where to Watch Jeremy Renner's Crime Drama
  7. Our Fault Is Streaming Now: Know All About This Gabriel Guevara and Nicole Wallace Starrer
  8. The Conjuring: Last Rites Is Now Streaming Online: Know Where to Watch the Latest Installment from the Horror Franchise
  9. Delhi Crime Season 3 OTT Release: Know When to Watch This Shefali Shah Thriller Series
  10. Vast Space to Launch Haven-1, the World’s First Private Space Station in 2026
Gadgets 360 is available in
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2025. All rights reserved.