= Subscriber content; or subscribe now to access all American Banker content.

Merchant Digital Wallet Group Members State Their Intentions

Several executives from retailers that make up the nascent Merchant Customer Exchange say they feel that the digital wallet joint venture is giving them a "seat at the table" where they once felt left out.

All say that up until the founding of MCX they felt disconnected from decisions that directly affect their businesses at the point of sale.


"There are probably a few things that created the impetus, but number one, we are closest to the consumer," says Dee O'Malley, Best Buy's director of finance. "We want to be heavily, heavily engaged in that consumer experience, and we think that, as merchants, we are in a pretty good place to do that."

O'Malley and executives from CVS Caremark and Walmart were sitting on a retailer panel at the 20th Annual ATM, Debit & Prepaid Forum.

Few details have been released about the merchants' potential mobile commerce moves.

The MCX - which includes major chains such as 7-Eleven, Best Buy, CVS, Lowe's, Sears, Shell, Target and Walmart - only announced its intentions to break into the payments industry in August.

There are still more merchants that will soon sign on, says Jamie Henry, Walmart's senior director of payment services.

Part of the reason why these apparent adversaries - all looking to take a chunk out of a consumer's pocketbook - have come together is to get more of a handle on their data, and to develop a tool that could allow them to better advertise to their customers.

"We have a very large extra care loyalty database," says Peter Nash, CVS Caremark's assistant treasurer. "It's over 70 million enrollees. From a marketing standpoint, I want to keep that relationship directly with the consumer."

MCX is solely focused on solving the mobile commerce experience for retailers, says Henry.

"MCX is going to be bigger than simply payments," he says. "But there will be other services that will be provided by MCX."

That could potentially mean loyalty rewards or other offers that the merchants could provide to users through the digital wallet.

Henry added that MCX won't easily show its hand. There will be no dates announced for rollouts anytime soon and no promises made of what technologies will be used. There is simply too much going on.

Follow Sean Sposito (@SeanSposito) this week as he covers The 20th Annual ATM, Debit & Prepaid Forum (#PaymentsForum) from Phoenix, Ariz.


(2) Comments



Comments (2)
improving the consumer experience? that's interesting ...... have you bought anything in a 7-11 recently? Best Buy has NFC capable terminals deployed everywhere that don't work as the capability was turned off. One way to improve the consumer experience in your stores would be to properly train retail workers so they are well versed in that which you sell and have efficient well maintained and secure POS systems.
Posted by fmastr | Monday, October 29 2012 at 2:38PM ET
The merchants of MCX are the closest to the point of sale experience with their customers; however, part of that experience, when it comes to mobile commerce, means passing the cost and risks of such card-not-present transactions onto their customers. Today, the banks and the card networks take the blame for not solving this part of the problem - and mitigation (i.e. CyberSource's solution), effectively only adds to the costs without actually eliminating the problem. MCX might consider something like Benedor's patented TSE program (www.benedor.com) as part of their solution for improving the customer experience. At the very least, they would secure all transactions, eliminate costs and simplify the process (including loyalty and promotional programs). In the process, they would also be taking control of the checkout experience, for the benefit of themseles and their customers.
Posted by rcarrott | Friday, October 26 2012 at 12:29PM ET
Add Your Comments:
Not Registered?
You must be registered to post a comment. Click here to register.
Already registered? Log in here
Please note you must now log in with your email address and password.