Now we know why Walmart snubbed Apple Pay

The system, which is now being tested at stores in Arkansas, home of Wal-Mart’s headquarters, will allow shoppers to pay with all major credit or debit cards through its app at the cash register. Bundled inside the Walmart mobile app, the new system will work only on the retailer stores so customers can pay for their shopping with a mobile phone, and it will be compatible with both Android and iOS.

Walmart Pay will be introduced in select USA stores on Thursday and in additional stores after the holiday season, Wal-Mart executives said on a video call with reporters on Wednesday.

When they’re ready to make their purchase, customers open the app and choose Walmart Pay, then scan the code displayed on the register.

Walmart is rolling out in its stores its own smartphone-based payment system that uses QR technology rather than the near-field communication technology, or NFC, used by the payment systems of players like Apple and Google. After that, the consumer activates the camera on the app to scan the quick-read (QR) code on the reader after the first item is scanned by the cashier. Walmart Pay has the ability to integrate with other mobile wallets as a preferred payment type, Eckert says, though Walmart hasn’t struck up any specific partnerships at this time. This is the first time a retailer, who has offered this type of mobile payment solution, according to Walmart. One of the reasons for this is because Walmart has teamed up with other retailers like Kmart, Best Buy, and 7-Eleven to make a mobile payment app called CurrentC.

“Nearly half of our customers bought their online orders on a mobile device”, said Neil Ashe, president and CEO of Walmart Global eCommerce.

The launch comes a little more than six months after Walmart said it was partnering with Alipay, the financial partner of Chinese e-commerce giant Alibaba, to bring mobile payments to 25 Walmart-owned stores in Shenzhen, China.

Mobile payments are expected to keep growing over the next few years.

Wal-Mart said Walmart Pay was developed independently, but it continues to remain associated with CurrentC as a possible mobile wallet addition to Walmart Pay. The stubborn refusal to accept Apple Pay, though, is surely frustrating for the many users of that payment method.