Chase Pay gets boost from retailers in mobile payment race
JPMorgan Chase is rolling out a rival mobile payment option to Apple Pay with a couple of big differences, and it has a group of large retailers on its side.
The bank has signed a deal with the Merchant Customer Exchange (MCX), a consortium of large retailers that includes Best Buy, Target and Walmart, to accept Chase Pay, its mobile payment app.
"Chase Pay solves a number of pain points for consumers and merchants. It will improve the customer experience and drive down the cost of payments," said Gordon Smith, CEO of consumer & community banking at JPMorgan Chase & Co., in a statement.
The bank has sold Chase Pay as a way for retailers to drive down costs, limit liability and improve speed at the checkout. This speed part is to be accomplished through the use of QR codes. As a TechCrunch article points out, unlike Apple Pay and others that use near field communications technology, the Chase Pay app displays a QR code for a cashier to scan.
Image: Chase Pay video
QR codes, as the same article points out, have not taken off in the U.S. One of the downsides when being used for payment is that, unlike Apple Pay and others that require a touch on the phone, users of Chase Pay will need to unlock their phones and launch MCX’s CurrentC app.
On the upside for retailers, Chase Pay doesn’t require any network or processing fees. It also captures shopper’s data to (hopefully) gain further insights that can be translated into continually improving shopper experiences. Of course, Apple has played up data privacy part of its pitch for using Apple Pay.
- Chase Announces Chase Pay – Chase
- The Problem With Chase Pay, The Bank’s Forthcoming Apple Pay Competitor – TechCrunch
- Chase to Launch Its Own Mobile Payments Service – eWeek
What do you sees as the benefits and drawbacks to retailers using Chase Pay? How do you think consumers will view it relative to Apple Pay and other competitors?