Chase to Launch Its Own Mobile Payments Service
Chase Pay, which is slated to begin in mid-2016, will take on Apple Pay, Android Pay, Samsung Pay and other competitors.JP Morgan Chase is jumping into the expanding mobile payments marketplace with a planned Chase Pay service that will launch in mid-2016 and take on products from established competitors, such as Apple, Google and Samsung. The Chase Pay service will allow customers to pay for goods and services in-store, in mobile apps or for online purchases at retailers, including Walmart, Target, Best Buy and Shell, according to an Oct. 26 announcement. The service will be available to some 94 million Chase credit, debit and pre-paid card account holders. Chase is partnering with Merchant Customer Exchange LLC (MCX), which is building a mobile payments service called CurrentC, according to Chase. Chase Pay will roll out to merchants that accept CurrentC, which will also process Chase Pay transactions. MCX services are available through more than 100,000 retail locations in the United States. Chase is partnering with 17 technology vendors so that other retailers can also offer Chase Pay services to their customers. "Chase Pay solves a number of pain points for consumers and merchants," Gordon Smith, CEO of consumer and community banking at JPMorgan Chase & Co., said in a statement. "It will improve the customer experience and drive down the cost of payments."
Chase Pay will work on most smartphones and will allow consumers to pay for goods and services, even at gas stations and drive-up windows, the company said. The system will use the same technology that many merchants already use to scan gift cards.