Wal-Mart to launch own mobile pay system

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.

While some stores like Starbucks or Dunkin' Donuts allow customers to pay with gift cards, Wal-Mart says it will become the first retailer to launch its own mobile payment system that works with an iPhone or Android device — and with a major credit or debit card.

Retailers, financial institutions and hardware makers are all trying to get a piece of what could be a very lucrative business.

Wal-Mart has moved into this field as Apple's one-year-old tap-and-pay system is being expanded to other merchants like Best Buy and KFC and comes several months after Google launched the Android Pay mobile wallet app and Samsung came out with Samsung Pay.

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.

[...] Ashe and Daniel Eckert, Wal-Mart's senior vice president of services, told reporters the system is designed to integrate with other payment applications like Apple Pay — if the retailer decides to include them.

The customer merely taps the phone next to a payment machine at the store and authorizes the purchase, usually with a fingerprint ID.

With Wal-Mart Pay, the company says no card information is stored on the phone, but the real card number is still stored at what it says is a secure data center.