ST. PETERSBURG, Fla.-Consumers will decide whether the Merchants Customer Exchange (MCX) becomes a viable payments network, say industry experts.
"At the end of day, it's all about consumers saying they are willing to take their current payments vehicles and throw them out the window for this," said Norm Patrick, director of strategic planning at PSCU.
Several sources think consumers may view MCX as too narrow an option for purchases and rewards. Caroline Willard, EVP, markets and strategy at CO-OP Financial Services, Rancho-Cucamonga, Calif., thinks MCX could be consumer friendly on a narrow basis.
"I don't think I have ever seen an example of when every retailer agreed on a single payment system, a true open-loop environment, or something that approaches a ubiquitous choice for making payments," she said. "In other words, getting maybe 90% of retailers in the country to agree on how these payments will be routed or handled so consumers are confident they can use this payment mechanism anywhere."
Reason To Care?
Teri Koenke, VP of product management at PSCU, reminds that when consumers have a bad experience they have little patience and long memories.
"Will they really see MCX as easier, simpler and better than working directly through their financial institution? If they have a bad experience, when they are very comfortable with their financial institution's payment solution and in this environment of instant expectations we live in it will not be good."
Tim Kolk, owner of TRK Advisors, Peterborough, N.H., summed up the situation, saying, "You really need consumers to have a reason to care" to switch to MCX. "I don't see how it will displace consumers who value their payments cards."
Rewards broad enough for consumers to pay attention to may be lacking, offered Kolk. "MCX rewards will likely be merchant specific and very tailored."
For info: TRK Advisors: trkadvisors.com, PSCU: www.pscufs.com, CO-OP Financial Services: www.co-opfs.org
