During its iPhone 6 press conference, Apple announced some big name partners for its Apple Pay system, but a number of high-profile retailers say they won't be supporting the system.
The system uses near-field-communication (NFC) to allow those with the latest iPhone to make purchases with their phone, rather than a credit or debit card. Apple announced earlier this week that McDonald's and Macy's would be among the outlets supporting Pay, but other top retailers like Wal-Mart and Best Buy likely won't be any time soon.
In order for buyers to use Pay, retailers must install NFC enabled scanners. According to the Wall Street Journal, only around 10 percent of merchants in the U.S. currently have NFC readers. Wal-Mart isn't among them, with the company confirming to the WSJ that Pay will not be supported.
Best Buy did install NFC scanners back in 2011, but stopped using them when they became too expensive to keep. The company says it isn't planning on supporting NFC scanners, either.
Both retailers are instead looking to use their own phone payment system that will save them money, called CurrenC. Coming in 2015 and owned by retailers themselves through the group Merchant-Customer Exchange, CurrenC is a software download that will be available for any iPhone or Android phone, instead of only the new iPhone 6 and iPhone 6 Plus like Pay.
Because CurrenC is a download and uses a QR code for retailers to scan rather than NFC, the system will be far less expensive for retailers to upkeep and will not require retailers to install expensive new scanners.
CurrenC will also connect with a consumers checking account and manage their gift cards, though it cannot be used with traditional credit cards.
Chris Ciabarra, Chief Technology Officer of Revel Systems, which installs checkout equipment at various stores and restaurants, tells the WSJ his company received a flood of calls from retailers asking how to install NFC-enabled checkout systems. Ciabarra says those bundles currently run $499.
"The truth is, today, no one uses NFC," Ciabarra said.
Apple is partnering with places like Walgreens, Whole Foods Market and Subway with the hope that customers who frequent those stores will grow accustomed to paying with their iPhone 6. If it becomes normal and successful, other big name retailers may decide they need to support the technology in order to keep from falling behind and failing to meet customer expectations.
As the saying goes, money talks, and retailers around the country are waiting to see if Pay or CurrenC will be talking louder.
