US retail consortium MCX picks Gemalto for mobile wallet

Merchant Customer Exchange (MCX), the mobile commerce joint venture put together by some of America's biggest retailers, has called in Gemalto to build its platform.

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US retail consortium MCX picks Gemalto for mobile wallet

Editorial

This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community.

Last year merchants - including 7-Eleven, Target and Wal-mart - decided to develop their own mobile system, contending that they could do better than the crowded field of banks, telcos and technology companies already in the ring.

Although MCX said in August that it was already working on its wallet, news from the group has been scant until now and the revelation that the system will be primarily barcode and cloud-based and run on Gemalto's Allynis Mobile Payment platform.

The consortium will also use Gemalto's software for the app and development kits to enable retailers to embed the wallet functionality within their own apps.

MCX hopes to fend off stiff mobile money competition from the likes of Google, PayPal, Square and the Isis consortium of telcos by tapping into its huge network of stores.

Once it is fully deployed, the wallet will be accepted at all MCX members, an unparalleled, growing group of merchants that collectively operate more than 75,000 stores and process more than $1 trillion in payments annually.

Customers, says MCX, will have access to a personalised payment experience integrated with merchant offers, promotions, loyalty and location-based services, which they will be able to use at many large retailers.

Dodd Roberts, MCX, says: "Gemalto's global experience and unparalleled expertise make it the ideal partner to develop a mobile wallet worthy of the stature of merchants backing MCX. Our work with them over the past months leaves little doubt that MCX will benefit from their considerable technical expertise."

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Comments: (1)

A Finextra member 

Hm, that's strange... The MCX' original plan was to use barcodes. You don't need Gemalto for that. 

Gemalto signals a shift to a "secure element". How will MCX integrate that on the phone without a partnership with either OEMs or mobile operators (who will not want to build an infrastructure for a clear competitor)?..

Also, a "wallet" is not a payment instrument. Will the issuers and the consumers want to store their payment instruments in somebody else's wallet? Somehow I doubt it... MCX forgot to ask the "what's in it for me" question in respect of all other parties they want to get dancing to their tune.

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