Wal-Mart to launch own mobile pay system

The Bentonville, Ark., chain’s video and a telephone press conference to tout its new mobile payment service – Walmart Pay – broke down when reporters were either unable to view the live video or were confused by what they should do once the video ended.

Wal-Mart Stores Inc., the world’s largest retailer, said it’s testing its own mobile payment system that will allow shoppers to pay with any major credit or debit card or its own store gift card through its app at the cash register.

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

Walmart Pay can’t be used at Target or other competitors, so it is more comparable to a retailer-specific app like the Starbucks app. Indeed, Walmart is enhancing its existing app, which is available on both the Apple and Android platforms, to include mobile point-of-sale payments.

“We’re making it as simple to pay in the store as it is to pay online”, says Neil Ashe, Walmart’s CEO of global e-commerce.

Asche said the company has worked on Walmart Pay technology for a “few months” because “we didn’t see a solution that worked across all payment types”.

To use Walmart Pay, you have to be in a Walmart checkout lane.

Twenty two million customers actively use the Walmart app each month and it ranks among the top three retail apps in the Google and Apple app stores.

The move signals that Walmart believes it’s best to build its own system to better serve its customers, even as it backs an industrywide mobile payment program that it’s testing with 10 other major retailers.

This late in the game it’s a weird move on Walmart’s part to launch its own Walmart Pay solution instead of accepting Apple Pay and Android Pay.

Walmart is removing the need to get your wallet out at the register with a new digital payment method called Walmart Pay.

Still, the new payment function is also a possible indication that Walmart could integrate with Apple Pay in the future.

Wal-Mart has been working with a consortium of retailers to develop a mobile wallet, called CurrentC, which was beta-launched in August, in a bid to rival Apple Inc’s (AAPL.O) Apple Pay. The phone’s camera is activated and scans a code displayed on the pay key pad.

You can link the Walmart app to your credit, debit or gift card and connect your Walmart account. An electronic receipt is sent to the app.