Retailers including Wal-Mart Stores Inc., Target Corp. and Best Buy Co. formed a company that would allow customers to pay with their mobile phones as they work to gain control over the growing method of processing purchases.
The company, named Merchant Customer Exchange, or MCX, is developing a mobile application, the retailers said today in a statement. The app is intended to work with all smartphones and as many forms of payment as possible, including Visa Inc. and MasterCard Inc. debit- and credit-card accounts, said Terry Scully, president of Target’s financial and retail services.
Banks are being courted so consumers can have access to an account they have with a bank such as Citigroup or JPMorgan, said Cook, who declined to comment on whether transactions would be made directly with financial institutions. Banks now get paid fees on transactions made over payment networks such as Visa. They, along with other participants in MCX, will be fairly compensated, Cook said.