Target Corp., Wal-Mart Stores Inc. and a host of other national retailers has formed Merchant Customer Exchange (MCX) to offer a smartphone payment app to make it easier for consumers to manage the growing array of instant coupons, gift cards and loyalty points when paying with their digital wallets.


The venture comes as mobile payment traffic is poised for explosive growth. In May, Gartner Research said the market for mobile apps will remain largely local and fragmented because large national solutions require years of collaboration. Still, Gartner estimated that 212 million people worldwide will use the apps this year and push up mobile payments by 62 percent to $172 billion. That figure could reach $617 billion by 2016, according to Gartner's forecast.

 

The rapid growth prompted Google to launch its Google Wallet app last year and major cell phone providers are working on a solution called Isis that could launch this month in Salt Lake City and Austin, Texas. Starbucks continues to role out its own app in the United States.


MCX did not disclose a launch date for its app, but said its initial focus centers on offering merchants a mobile-commerce solution capable of seamlessly integrating a wide range of consumer offers, including coupons, loyalty points, and other promotions. The application will be available through virtually any smartphone.


MCX includes merchants such as: 7-Eleven, Inc.; Alon Brands; Best Buy Co., Inc.; CVS/pharmacy; Darden Restaurants; HMSHost; Hy-Vee, Inc.; Lowe’s; Publix Super Markets, Inc.; Sears Holdings; Shell Oil Products US; Sunoco, Inc.; Target Corp. and Wal-Mart Stores, Inc. Combined, these initial members serve nearly every smartphone-enabled American and account for approximately $1 trillion in annual sales. While current MCX merchants have unmatched scale, MCX intends to address the needs of financial institutions and merchants of all sizes to better serve consumers in the growing mobile marketplace.

“MCX will leverage mobile technology to give consumers a faster and more convenient shopping experience while eliminating unnecessary costs for all stakeholders,” said Mike Cook, corporate vice president and assistant treasurer, Wal-Mart. “The MCX platform will employ secure technology to deliver an efficiency-enhancing mobile solution available to all merchant categories, including retail stores, casual dining, petroleum and e-commerce.”


“We believe MCX is uniquely qualified to offer the most comprehensive mobile payment options for consumers,” said Terry Scully, president of financial and retail services, Target. “By participating in MCX, merchants are in a position to effectively deliver innovative payment approaches that aren’t available today.”


“As merchants, no one understands our customers’ shopping and payment experience better than we do, and we’re confident that together we can develop a technology solution that makes that experience more engaging, convenient and efficient,” said Mark Williams, president of financial services, Best Buy.