The new mobile payment space is growing. So if that’s the case, why is CurrentC failing? How does a company with backing from so many major retailers completely flop? Before I start, it’s important to understand that we don’t yet know who the leaders of this new space will be going forward. However, with successful players like PayPal, Apple Pay, Android Pay, Samsung Pay and others, winning is tougher than most thought.
We expected dozens of major retailers behind CurrentC like Target and Walmart to virtually guarantee success, but that has not happened. Recently Walmart introduced Walmart Pay to the marketplace, which looks like a direct competitor. Do they know something we don’t?
CurrentC had a timing advantage. They introduced this idea in 2012. That was plenty of time in today’s fast paced tech space to roll out a new technology. They were there before Apple Pay and Android Pay and others. However, they seem to have let that edge slip through their fingers.
PayPal, Apple Pay, Android Pay, Samsung Pay
Today we see an explosion of first generation mobile pay technologies from a wide variety of trusted brand-name companies. Some are pay tech companies like PayPal. Others are mobile companies like Apple, Google and Samsung. Still others are retailers like Walmart. And I predict the pace of newcomers to this space will continue to rise.
Today the mobile payment space has lots of competitors and growth is occurring. Not as quickly as we originally thought, but growth is occurring and competitors like Apple Pay, Android Pay, Samsung Pay and others are earning market share.
PayPal may be the first alternative payment tech company. They have been around since the 1990s and they are transforming into a leader in this new space as well.
Some of these mobile payment technologies can share the same counter-top scanning technology. Some cannot. This makes the valuable counter-top space the next battleground. Some stores will work with every provider. Other stores will choose one over another.
Must retailers use all mobile payment competitors?
Will retailers choose one mobile payment technology over another? Or will they choose them all? That is a question each retailer must answer on their own. Some will and some won’t.
Will choosing one over another mean retailer’s will limit their annual income? I don’t think that will be the result in the early days. However, as more customers use one or the other for all their purchases they may indeed choose one retailer over another based on the mobile payment technology they offer. So long term, yes this will be a factor.
Auto maker mistake choosing iPhone or Android
It’s like how automakers seem to be choosing either Apple iPhone or Google Android technology in their dashboards. Customers will not switch their preferred smartphone to fit into a car they want. So carmakers are shortchanging themselves by cutting off half the market of available customers. This is a mistake I believe the auto industry will correct sooner or later.
So with all this growth in the mobile payment space, what really happened with CurrentC and their backers? Why did Walmart create Walmart Pay? Why did CurrentC take so damn long to enter the marketplace? Why did they wait till competitors entered? Why did they not have any PR and marketing?
Where CurrentC went off the tracks
Bottom line, CurrentC waited too long and they lost their early advantage. Not only that, but they waited so long they may have lost their chance to be successful in this space period.
There are plenty of questions, but any way you slice it, the future doesn’t look good for CurrentC. However, the future looks much brighter for brand-name competitors like PayPay, Apple Pay, Android Pay, Walmart Pay and all the others who will jump in during the next few years.
The question always is, who will the mobile pay leaders be? I don’t think anyone really knows the answer to that question since the space is still so young. All we can do is follow it going forward. However, even with the problems at CurrentC, I think mobile pay will continue to grow and become an important payment segment.
Editor’s note: On June 28, CurrentC said it will deactivate all current user accounts. From the company’s website: “Please stay tuned for new information on CurrentC as our future plans evolve.”
