Mobile payment systems like Apple Pay, Android Pay, or Samsung Pay have taken off since Apple launched their service in late 2014. Gordon Smith, Chase’s CEO of consumer & community banking, made an announcement at the Money20/20 payments conference in Las Vegas on Monday outlining Chase Pay. The new service will be pitted against the big contenders like Apple and Google, but instead of NFC it will use QR codes. Chase is partnering with MCX, a consortium of retailers lead by Walmart, to have Chase Pay support in member stores, restaurant, and gas stations.
Using QR codes to pay isn’t as simple as solutions built right into the phones, but work in favor of retailers. The retailers pay lower transaction fees on Chase Pay than other competing services like Apple Pay. This has always been a big draw for retailers who look to lower prices but still generate revenue. MCX has had the app CurrentC, but it’s only in the testing phase in Ohio. Some retailers have backed away from CurrentC as it’s become unpopular with users, and it’s been delayed to market a few times.
Chase Pay’s use of QR codes on phones means it should work with most Android and Apple phones; Android Pay and Samsung Pay work only on Android devices and Apple Pay on iPhones. Chase Pay will only work with Chase credit and debit cards, and Chase will pre-populate users apps with their most used cards. So if Chase can get Walmart to start accepting Chase Pay – the service could have the potential to take off with a small subset of users.
Chase Pay will more than likely be terribly built, and a way for Chase and retailers to generate more money. Apple Pay and Android Pay are built for consumers first than which is why they’ve taken off . Tell us in the comments below what you think about Chase Pay and if you’d use it!