Why Walmart Blocks Apple Pay
Published on Jun 20, 2025
1. Control the Checkout, Control the Customer
Walmart wants the customer interaction, transaction flow, and data. Apple Pay puts customer data in Apple’s hands—Walmart gets only anonymized tokens. Their own Walmart Pay (QR‑code–based) funnels payments through Walmart’s app, tracks purchase behavior, and locks users into its ecosystem .
2. Escaping Credit‑Card Fees
NFC payments (via Apple Pay) rely on Visa/MasterCard rails, which include interchange fees. Walmart, through its alliance with MCX and the CurrentC initiative, sought to bypass these to reduce costs .
3. Building Their Ecosystem
Walmart isn’t just a store—it’s building a financial services stack: Walmart Pay, scanning apps, self‑checkout tools, and even its neobank “One.” Every feature nudges users into Walmart’s ecosystem, boosting recurring engagement and opening doors to ads, loyalty programs, and fintech partnerships .
Lessons for Entrepreneurs
- Own the Pipeline
Control the transaction path—from initial interaction to fulfillment—means you control customer data, context, and experience. - Think Ecosystem > One-off Sale
Recurring usage (via app, subscription, or payments platform) creates stickiness and opens multiple monetization channels. - Scale Small Fees
Micro-fees (transaction or subscription) can compound into massive revenue at scale—whether from interchange savings, app u
The real power lies in strategic control—not just feature rollout, but owning the platform customers depend on.
What Entrepreneurs Should Ask Themselves
| Question | Strategic Insight |
| Who owns the customer interaction? | Direct touchpoints = greater data and loyalty |
| How can we embed services across user journey? | Makes users rely on your ecosystem |
| How do fees/infrastructure costs affect this? | Use scale or vertical integration to shift margin |
| How is data monetized or leveraged? | Analytics, personalization, cross-sell opportunities |
What’s Next?
- Walmart’s Canadian outlets now accept Apple Pay—showing regional pragmatism .
- U.S. Walmart remains committed, with CEO Doug McMillon confirming their strategy to direct users through Walmart Pay .
- Apple Pay continues to dominate at over 90% of U.S. retailers, processing trillions in transactions and maintaining a 92% market share among digital wallets .
Entrepreneurs: Think Bigger
This isn’t just a payments war—it’s a battle for ecosystem dominance. Whether you’re in fintech, ecommerce, or software:
- Embed deeper than just a feature—own the pipeline.
- Build re‑usable and valuable touchpoints—create ecosystems.
- Monetize through micro‑interactions—fees + scale = profit.
In short: Don’t just sell. Position. Own the customer journey, drive repeat engagement, and build with long-term control and data monetization in mind.
