MCX Picks FIS to Develop M-Commerce Platform (July 11, 2013)
July 11, 2013
Another major piece of MCX’s jigsaw puzzle fell into place today with the announcement that payments technology provider FIS will provide the payments processing platform, including transaction routing and settlement, for the retail consortium’s evolving mobile commerce system. Jacksonville, Fla.-based FIS will execute mobile payments at participating retailer outlets in combination with a barcode-based digital wallet available to customers through various mobile devices, MCX said. MCX in April announced that Gemalto is developing its mobile wallet software.
Coppell, Texas-based MCX, founded in 2012 with retail heavyweights Walmart, Target and 7-Eleven, has not said when the system will go live, but it promises to offer customers secure, instantaneous payments personalized with offers, promotions, loyalty and other services. The venture is gaining momentum—and more participating merchants—as it lines up the elements of its system, analysts say. MCX’s goal is to cut operations costs and improve efficiencies apparently by relying primarily on ACH-based transactions, David Schropfer, head of mobile commerce at Luciano Group, tells Paybefore. “MCX needed a partner with the network and infrastructure to link directly to consumers’ bank accounts, and FIS is a good choice with the processing power and relationships to work things out,” he says, adding the MCX’s growing momentum is likely “adding pressure” for other mobile wallet ventures, including Google Wallet, Isis and LevelUp.
Kohl’s and Circle K are the latest to join the growing list of participating merchants, joining a diverse array of merchants that includes Southwest Airlines, Phillips 66 and Bed, Bath & Beyond. Retail participants in MCX now account for more than 90,000 stores that are processing more than $1 trillion in payments annually, the consortium said.