Major Retailers Band Together to Take on Google Wallet

by InvestorPlace Staff | August 15, 2012 11:18 am

Major Retailers Band Together to Take on Google Wallet

Today, over a dozen mega-retailers — like Wal-Mart (NYSE:WMT[1]), Target (NYSE:TGT[2]) and 7-Eleven — announced[3] an effort to create a mobile payments system called the Merchant Customer Exchange (MCX).

With a continuing surge in smartphone use, it seems inevitable that mobile payments systems will help phones eventually replace physical credit and debit cards[4]. Already, cutting-edge companies like Starbucks (NASDAQ:SBUX[5]) are rolling out their own mobile apps to allow consumers to make purchases. Starbucks recently invested $25 million in Square[6], which is a top player in the space, as part of its move.

As for MCX, it’s still in the formative stages — it doesn’t even have a CEO yet! But the group will have the resources to build a network, as well as get lots of market share because of the massive distribution footprint, so consider it a direct shot at tech players like Google (NASDAQ:GOOG[7]).

Endnotes:
  1. WMT: http://studio-5.financialcontent.com/investplace/quote?Symbol=WMT
  2. TGT: http://studio-5.financialcontent.com/investplace/quote?Symbol=TGT
  3. announced: http://online.wsj.com/article/SB10000872396390444375104577590954176856154.html?mod=WSJ_hps_LEFTTopStories
  4. replace physical credit and debit cards: http://investorplace.com/2012/08/digital-payments-pluses-and-minuses/
  5. SBUX: http://studio-5.financialcontent.com/investplace/quote?Symbol=SBUX
  6. invested $25 million in Square: http://investorplace.com/2012/08/starbucks-to-accept-square-mobile-payments/
  7. GOOG: http://studio-5.financialcontent.com/investplace/quote?Symbol=GOOG

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