Yesterday, we posted about JCPenney inexplicably removing support for Apple Pay, both from its retail stores and its mobile app.

Well now we know why.

JC Penney (as posted in the linked TechCrunch post):

A third-party credit card brand made the requirement for all merchants to actively support EMV contactless functionality effective April 13, retiring the legacy MSD contactless technology in place. Given the resources and lead time associated with meeting the new mandate, JCPenney chose to suspend all contactless payment options until a later date. Customers still have the ability to complete their transactions manually by inserting or swiping their physical credit cards at our point-of-sale terminals in stores, an option employed by the vast majority of JCPenney shoppers.

As to whether JCPenney will bring Apple Pay back, the TechCrunch post quotes JCPenney CEO Jill Soltau:

“I think that’s one of the key initiatives that we’ll be working on here in the coming months because we’re not being as strategic in how we speak to the customer and engage with the customer through our pricing and promotion,” she said. “And I would frankly say it might be a little bit confusing, and you might not know exactly when you can get the best value at JCPenney,” the CEO added.

The hint here is the importance to JCPenney of customer purchase data, something they lose with Apple Pay:

Customer purchase data allows a retailer to better target its customers with relevant promotions, as stores are able to collect the customer’s name and card number at point of sale, which they can then combine with other demographic data like the customer’s address, phone and email.

Apple Pay, meanwhile, prevents this level of access — something that customers like, but retailers traditionally have not.

The push and pull of marketing and privacy. Is Apple Pay inevitable? Will customers push back on JCPenney’s move away from privacy? Keeping an eye on this one.