Tesco PayQuiq Represents New Foray into Store-Based Mobile Payments

When it comes to mobile payments, we’ve seen two major factions so far: there’s the version the stores sponsor, and the version the mobile device makers offer.

A new entrant in the store version has emerged, and it’s from one of the biggest franchise shops in the United Kingdom: Tesco.

Tesco’s PayQuiq gives shoppers the options to pay for any transaction up to 400 pounds sterling—about $575 US—with mobile devices for about 500 different Tesco locations.

Right now, Tesco is bringing in a group of Clubcard holders about 600,000 strong—which itself is something of an unusual number—to test the system.

Users interested need to register both Clubcard and payment card with the app, and then use a quick response (QR) code for completion of the order.

One of the biggest reasons behind this move, reports suggest, is that stores are interested in cutting out the Apple / Android middleman, saving on expenses and bringing in new revenues.

Sainsbury is also said to be working on its own app known as SmartShop, which gives users several options including the ability to make and pay for a complete list of goods.

Meanwhile, Walmart’s own effort has been on the table for some time now, and easily one of the best examples of mobile payments comes from Starbucks.

It’s a fine line the companies will have to walk. If the shoppers want to use Apple Pay, they’re not likely to be mollified by Tesco PayQuiq unless there’s a specific reason to do so, like loyalty programs or similar incentives.

After all, some reports suggest that shoppers are really only willing to work with a handful of payment systems, and they aren’t likely to want to switch from one app to another for all their shopping.

They’ll stick with the apps that are most convenient, safest, offer the best incentives, or a combination therein.

Customers want a good deal, and a lot of separate payment systems doesn’t qualify. The stores that offer the best payment systems will ultimately come out ahead here, but many of these will have to beat an entrenched rival to truly get ahead.