Safeway's new CEO, Robert Edwards, said the grocer is already hearing from other retailers that want to use the technology behind its Fast Forward payment program. It uses a loyalty card linked to a shopper's checking account to avoid the the hefty fees merchants pay when they accept bank debit cards.
Fast Forward is being tested in Sacramento and Edwards says it will be "many months" before it's available throughout Safeway's territory. He declined to say after Tuesday's annual meeting when the program will be available in the Bay Area.
But he told me that Safeway is already hearing from other retailers eager to avoid fees associated with accepting debit cards carrying the MasterCard (NYSE: MA) and Visa (NYSE: V) logos. I believe the service could eventually be packaged into its own subsidiary and spun off, much like it did this year with the Blackhawk prepaid gift cards business. Edwards told shareholders that the grocer's stake in fast-growing Blackhawk Network Holdings (NASDAQ: HAWK) is worth $1.3 billion, based on recent trading in that company's newly public stock.
To read the rest of the story, please go to: San Francisco Business Times