Grocer Kroger launches QR code-based payment service, snubs Apple Pay | RetailTechPodcast

Grocer Kroger launches QR code-based payment service, snubs Apple Pay

Dubbed Kroger Pay, the app-based solution generates single use QR codes on a customer's device, which are subsequently scanned by a Kroger cashier upon checkout. Kroger launched Kroger Pay in Colorado and Columbus, Ohio, on Wednesday, with plans to expand availability to ten additional cities this spring before covering all stores nationwide by the end of 2019, reports local outlet WCPO. A separate Kroger Rewards debit card also debuted to tie store rewards to Kroger Pay purchases. Chase Pay is built in part from the ashes of the CurrentC platform, a payments technology developed by the Merchant Customer Exchange consortium as a direct rival to Apple Pay. Kroger's adoption of a first-party service all but confirms that outside products like Apple Pay will not be accepted at the chain's nearly 2,800 grocery stores, at least in the near term. Unlike Apple Pay, which employs NFC technology to securely transfer user credentials from an iPhone or Apple Watch to a compatible point of sale terminal, Kroger Pay and other QR code-based systems rely on visual assets that in some cases are more easily purloined by hackers. With one-time codes, Kroger's solution is more secure than static QR code options offered by competitors, but may not be as secure as Apple Pay's tokenized transaction technology that replaces credit card information with unique digital identifiers generated on a per-transaction basis. As Kroger goes its own way with Kroger Pay, Apple's proprietary payment product is slowly picking up steam. Read more