Kroger Rolls Out Single Use QR-Code Based Mobile Payment Solution 'Kroger Pay'

Banking CIO Outlook | Tuesday, February 19, 2019

Grocer Kroger has rolled out a mobile payment solution Kroger Pay, generates single use QR codes on a customer's device, subsequently scanned by a Kroger cashier upon checkout. This service allows users to link any major credit or debit card to the digital wallet.

Grocer Kroger has launched the product in Colorado, Ohio and Columbus with plans to expand availability to ten additional cities. A separate Kroger Rewards debit card is also premiered to bind store rewards to Kroger Pay purchases.

Kroger's vice president of operations Mary Ellen Adcock says that Kroger pay is one among the few wallet that twins loyalty and payment. The application of this exciting technology is further step in front end experience transformation.

Kroger's adoption of a first-party service all but confirms that outside products like Apple Pay will not be accepted at the chain's nearly 2,800 grocery stores. Kroger Pay and other QR code-based systems rely on visual cues that in some cases are more easily purloined by hackers unlike Apple Pay, which employs NFC technology to safely transfer user credentials from an iPhone or Apple Watch to an appropriate point of sale end. Kroger solution is more secure with the one-time codes than static QR code options offered by competitors, but may not be as secure as Apple Pay's tokenized transaction technology with unique digital identifiers generated on a per-transaction basis that replaces credit card information.

With the launch of Kroger Pay, Apple's payment product has started working at a fast rate.

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