Two major US pharmacy chains are no longer accepting Apple Pay

27 Oct 2014

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Major US pharmacy chains Rite Aid and CVS have disabled Apple Pay from working in their stores amid reports they are involved in the development of a rival system.

The New York Times reports that both retailers stopped accepting the highly anticipated mobile wallet over the weekend, just a week after its launch.

Analysts say the decision relates to Rite Aid and CVS's position in the Merchant Customer Exchange (MCX), a consortium of large retailers presently involved in the development of its own mobile payment system known as CurrentC. MCX retailers also include other large chains like Best Buy, Gap and Walmart.

Representatives from CVS did not respond to requests for comment from The New York Times, though a spokesperson for Rite Aid said that the company "does not currently accept Apple Pay" and that it was "still in the process of evaluating mobile payment options". Apple also declined to comment.

"Clearly Rite Aid and CVS are making a business decision over a customer satisfaction decision," said Patrick Moorhead, president of tech industry analyst firm Moor Insights & Strategy.

Apple Pay enables iPhone 6 and iPhone 6 Plus owners to use contactless payment technology to make purchases by placing his or her phone up to a card reader. It has yet to be rolled out in Ireland.

CurrentC is slated for a 2015 release.

Apple Pay image via Shutterstock

Dean is a freelance journalist and editor covering media.

editorial@siliconrepublic.com