JP Morgan to Launch Chase Pay to Compete with Apple Pay
In an effort to compete with other digital wallets such as Apple Pay, PayPal and Android Pay, JP Morgan Chase will introduce Chase Pay in the coming year. The company plans to make it easier for its users to make purchases in stores and online.
Chase will become part of the Merchant Customer Exchange (MCX) which includes major retailers like Walmart, Target and Best Buy. These retailers will promote Chase Pay to a wider audience by installing a Chase Pay logo on their websites and mobile apps which may encourage users to pay using this product.
Chase currently has over 94 million prepaid, debit and credit card customers, so the audience for this platform is vast. “We’ve got the scale to bring an awful lot of customers,” Gordon Smith, head of consumer and community banking at JP Morgan Chase, said in an interview.
Chase also plans to scale up its marketing efforts by incorporating store loyalty programs into their Chase Pay app. Users who choose to make a transaction with Chase Pay will still earn up rewards with their favorite retailers when they make their purchases.
To entice retailers to sign up with the retooled platform, Chase plans to offer discounts to merchants with large transaction volumes. The more people use Chase Pay through their stores, the less Chase will charge for processing the payment.