InComm will work with the Merchant Customer Exchange to support digital gift card and loyalty programs for retailers, while also expanding MCX's CurrentC mobile wallet to more locations.

Atlanta-based InComm connects various service providers at the point of sale, allowing consumers to activate prepaid cards, pay bills, obtain discounts through loyalty programs, purchase digital products in-store or add funds to an online account.

MCX, a mobile payments initiative from major retailers including Wal-Mart and Target, is currently testing its mobile wallet, with plans for a full rollout next year. InComm and MCX declined requests to be interviewed about their partnership.

MCX revealed the CurrentC brand shortly before Apple Inc. announced its Apple Pay mobile wallet, which will be powered through Near Field Communication chips in the latest iPhones.  

Apple Pay currently lacks a loyalty program, other than the cards consumers can store in its Passbook application.

As such, MCX may lean on InComm to provide a connection to loyalty programs at the more than 450,000 "points of retail distribution worldwide" that InComm touts in a Sept. 30 press release.

"InComm's integration with the merchant POS is to facilitate the sale of gift cards as part of the end-cap displays in national grocery chains," said payments analyst Kevin Grieve, a partner with Chicago-based Strategy&, formerly Booz & Company. Grieve noted that much of the relationship is still speculation because the CurrentC wallet has not yet launched.

MCX is likely considering using InComm as a "back door" into the merchant point of sale to enable MCX acceptance, Grieve said.

In July, InComm landed an agreement with Sweden-based Seamless Distribution AB to establish digital closed-loop reloadable cards on the SEQR wallet, touting the move as a "Starbucks level" mobile-pay advancement.

InComm Digital Services has seen consumer adoption of digital gift cards grow each year since launching the service in 2009.

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