CVS ditches consortium solution, develops in-house payment app

  • CVS has abandoned a merchant consortium to develop an in-house retail payment app.
  • The merchant joins Walmart as the latest company to leave MCX.

Email a Friend

CVS ditches consortium solution, develops in-house payment app

CVS Health announced the launch of a retail payment app late last week, spurning the Merchant Customer Exchange and flying solo into mobile payments. Aptly named CVS Pay, the feature will be integrated into the current CVS Pharmacy app, allowing customers to pay at in-store checkouts using the app.

CVS Pay supports all major credit and debit cards, and integrates a rewards program, ensuring shoppers get rewarded with points when they shop with the mobile app.

Customers will also be able to manage and pay for their prescriptions through the mobile app, a convenient feature stemming from the in-app integration. Users will now be able to refill, manage, and pay for all pharmacy items through the app, and can receive alerts regarding their prescriptions. All prescription verifications take place within the app, and customers are sent their receipts through the app.

“Over the past year, our digital team has brought to market numerous new digital tools like CVS Pay that make shopping at CVS Pharmacy easier and more convenient,” said Brian Tilzer, senior vice president and chief digital officer of CVS Health. “We’ve been excited by the level of customer adoption of these digital solutions, and we will continue our quick pace of innovation and deployment to make our customers’ health care experience even easier.”

Guess the MCX has to update their page...
Guess MCX needs to update its merchant page…

Mobile payment capabilities are currently available at select stores in New York, New Jersey, Pennsylvania, and Delaware, with a national rollout slated for Q4 2016. The app is available for iOS and Android operating systems.

This move by CVS is another blow to the MCX, a consortium of merchants created to compete with third party wallets like Apple Pay and Android Pay. Mired with delays and security issues, CurrentC, the consortium’s retailer app, has still yet to be released, and retailers like CVS and Walmart have chosen to proceed down the in-house mobile app development route.

Retailers are exploring the advantages of developing their own apps, and that may be another reason why companies are leaving MCX. By developing an app from the ground up, merchants can create a tailor-made user experience that wouldn’t be available from a consortium built app.

“Many solutions have become a commodity, making a consortium a thing of the past,” said Or Ben-Oz, founder and CEO of Rewire, a remittance company. “I think that in the future we’ll see more retailers launching their own wallets with perks and experience so well it will be hard to turn down.”

Photo credit: MikeKalasnik via Visual Hunt / CC BY-SA

0 comments on “CVS ditches consortium solution, develops in-house payment app”


The Daily Tearsheet: A day in the life of Kristen Anderson, the CEO and co-founder of Catch

  • In this daily, we've got a day in the life of Kristen Anderson, the CEO and co-founder of Catch
  • And in other news, NFTs continue to spread.
Rivka Abramson | May 03, 2022
Events, Uncategorized

New speakers announced for Tearsheet’s Resilience Conference

  • The Resilience Conference will celebrate the people, teams and companies successfully navigating through this crisis.
  • 3 new speakers have just been announced.
Tearsheet Editors | June 25, 2020
The Customer Effect, Uncategorized

Inside Yielders, the UK’s first regulatory compliant Islamic crowdfunding platform

  • Yielders, an equity-based crowdfunding platform for real estate, is the first Shariah-compliant financial technology company to get regulatory approval in the U.K.
  • The platform's user base is 35 percent non-Muslim, some of whom may be attracted to the ethical investing principles.
Suman Bhattacharyya | May 18, 2017
Sponsored, Uncategorized

FinTech is changing your life, and you don’t even know it

Brandeis University | May 01, 2017

FinTech Week: By the numbers

  • Empire Startups' inaugural FinTech Week begins today in New York
  • In preparation for 25 forthcoming events over four days, here's a breakdown by the numbers.
Tanaya Macheel | April 24, 2017
More Articles