JP Morgan Chase is to launch its own competitor to Apple Pay that will allow consumers to pay retailers using their smartphones in stores.
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CNBC reports that Chase Pay will first be available for the over 90 million consumers with Chase bank accounts or credit cards. The Chase Pay app will be available on iOS and Android at launch, but Smith did not specify a date. While most MCX members were originally subjected to an exclusivity agreement, that has since expired, leading several MCX Consortium members to offer support for Apple Pay.
The company will also be teaming up with Merchant Customer Exchange (MCX) to help power its mobile payments.
“I’m not sure anyone else has embedded the merchant value proposition in the same way that we have”, Gordon Smith, head of JPMorgan’s consumer bank, said in an interview. Because both the merchant and customer are using the bank’s network instead of an outside network, each transaction should cost less, if only by a few cents.
The marketing firm’s research also found that among Apple Pay users, 86 percent signed up with credit cards while 49 percent use debit cards and 22 percent use other types of prepaid cards. It’s not just the consumers who will benefit from this new mobile payment method.
According to Yahoo, Chase Pay will let you use a Chase credit card via your smartphone with a barcode. In addition, Chase Pay comes with a fixed pricing and no additional fees, whether that be network fees, merchant processing fees or merchant fraud liability. And if that weren’t enough, Chase Pay utilizes the same technology already used by merchants for gift cards: barcode and QR code scanners. Will Chase Pay be good enough to rival existing players? Retailers included in the Merchant Customer Exchange (MCX) ring up more than $1 trillion of sales per year and have over 100,000 outlets. “This gives us an opportunity to simplify payments for Chase’s extensive customer base, deepen loyalty in a way only MCX can and enhance the customer experience through added services consumers expect from a mobile application”.
In keynote sessions Monday, JPMorgan Chase unveiled a payments service along with retail partners including Wal-Mart, Target and Shell.
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Other companies that are trying to get a share of the market include Samsung Pay from Samsung, Chase Pay and Android Pay.
