In a sudden move that has more questions than answers right now, JCPenney has discontinued Apple Pay as a payment option both in-store and online. What’s unusual here is that merchants typically add payment acceptance options rather than removing them. There are instances where disputes arise, usually over transaction fees, and a retailer with some clout, such as Walmart or Kroger, will stop taking a card network. However, there is no public information regarding any issues between JCPenney and Apple. Apparel stores like JCPenney can take advantage of an often higher sales transaction when a consumer makes a mobile payment. File this story under puzzling.
An Apple Insider article discusses more on this topic which is excerpted below.
As of this weekend, the department store chain JCPenney no longer accepts payment by Apple Pay either in-store or via its iOS app. The company did not announce that it was ceasing to support the service, but it has confirmed to customers over Twitter that this is an intentional decision rather than the fault of any technical issue.
JCPenney is believed to have first run a pilot program with Apple Pay as long ago as November 2015, but the roll-out to all of its nationwide stores didn’t take place until July 2017. The addition of Apple Pay to the JCPenney iOS app happened soon after, and the company has also made its credit card available through Apple’s service.
The company has not as of yet given any reason for the move.
The company has a long and not always successful connection with Apple, having hired away Apple Store creator Ron Johnson in a move to revive the JCPenney chain which failed.
Overview by Raymond Pucci, Director, Merchant Services at Mercator Advisory Group
