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Major Retailers Band Together to Take on Google Wallet

Wal-Mart, Target, 7-Eleven to launch new mobile payments network


Today, over a dozen mega-retailers — like Wal-Mart (NYSE:WMT), Target (NYSE:TGT) and 7-Eleven — announced 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. Already, cutting-edge companies like Starbucks (NASDAQ:SBUX) are rolling out their own mobile apps to allow consumers to make purchases. Starbucks recently invested $25 million in Square, 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).

Article printed from InvestorPlace Media,

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