Chase takes aim at Apple Pay with new ‘Chase Pay’ mobile payments service

“JPMorgan Chase, one of the world’s biggest banks, on Monday announced a new mobile payments service meant to compete with similar offerings from tech giants Apple, Google and Samsung,” Aaron Pressman reports for Yahoo Finance. “The new service, called Chase Pay, will be available by the middle of next year. And unlike its competitors, Chase’s service will work at almost all leading retailers, including Walmart and Target. Chase Pay will also work at the most popular pharmacy, gas station and grocery chains that have lagged in adopting Apple and Google’s pay services.”

“Chase Pay will allow consumers to rack up rewards points with their Chase credit cards as well as with retailers’ loyalty and rewards programs, Gordon Smith, CEO of Chase’s Consumer and Community Banking division, said in a speech at the Money 20/20 conference in Las Vegas,” Pressman reports. “Chase’s new service will rely on relatively low-tech bar codes displayed by the Chase pay app on any smartphone. Apple and Google are using a more modern wireless technology that relies on a Near Field Communications, or NFC, chip which is only included in some phones. But Apple doesn’t allow any other company’s apps to access the NFC chips in iPhone, putting would-be competitors in a tough position. ”

“Making a consumer scan the code for a purchase is slower and more cumbersome that the ‘tap and pay’ enabled by NFC chips,” Pressman reports. “Chase is partnering with the Merchant Customer Exchange LLC’s CurrentC service, a joint venture established by the big retailers to create a payments service. There is some irony in Chase partnering with CurrentC. Big retailers set up the venture in 2012 with the hopes of convincing consumers to pay more frequently with store-issued private label cards and debit cards rather than credit cards issued by Chase and other banks, which carry higher transaction fees for the retailers. But CurrentC has yet to offer a product beyond a small beta test and has been leapfrogged by Apple.”

“Apple will have more than a one year headstart on Chase, but most consumers have yet to try Apple Pay,” Pressman reports. “A new survey from Phoenix Marketing released on Monday found only 14% of U.S. households with a credit or debit card have tried Apple Pay even one time over the past year.”

Read more in the full article here.

MacDailyNews Take: Scanning bar codes? Welcome to the Aughts!

Whenever Apple wants to get serious, they should kneecap this crap. As we wrote in August:

Apple, give us a reason to use Apple Pay beyond looking like tech dorks in front of the line at the register. What’s the incentive to use Apple Pay? There is none besides looking like a flaming nerd. As if Apple doesn’t have any money. That, inexplicably, is how they approach Apple Pay. Hello, Tim? Eddy? Talk to some people who actually go to stores and shop for things, please.

Incentivize its use! Give Apple Pay users a percentage of every dollar spent via Apple Pay to spend at Apple Stores. Something. Anything! Get people used to using it first. Sheesh. It’s really not that difficult. It really isn’t.

SEE ALSO:
Starbucks, KFC, and Chili’s to accept Apple Pay this year – October 8, 2015
Barclays to bring Apple Pay to the UK in early 2016 – October 7, 2015
Some Best Buy stores are now accepting Apple Pay – September 18, 2015
MCX CEO gone a day after Apple Pay lands Best Buy – April 28, 2015
Best Buy capitulates, to accept Apple Pay despite CurrentC allegiance – April 27, 2015
Major retailers see Apple Pay wave – November 17, 2014
In only 3 weeks, Apple Pay is changing how consumers pay – November 17, 2014
Boycott CVS and Rite Aid – October 27, 2014
Bad business: CVS and Rite Aid antagonize their most well-heeled customers by blocking Apple Pay – October 27, 2014
CVS stores reportedly disabling NFC to shut down Apple Pay – October 25, 2014
iPhone users earn significantly more than those who settle for Android phones – October 8, 2014
Yet more proof that Android is for poor people – June 27, 2014
More proof that Android is for poor people – May 13, 2014
Apple’s iOS dominates in richer countries, Android in poorer regions – March 25, 2014
Twitter heat map shows iPhone use by the affluent, Android by the poor – June 20, 2013

24 Comments

  1. Forget incenitivizing its use, too many small and medium businesses don’t want to or can’t afford spend $1500-2000 on the special NFC receivers.

    Apple should give them out for interest free monthly installment payments or for whatever it takes to make them widespread and ubiquitous.

    1. Not a bad idea, if they are able to identify them as small and medium, from a national registry like the Better Business Bureau perhaps. The bigger firms are installing the new tech to indemnify themselves against fraud, but Mom-and-Pop corner stores and even some franchises must scrimp and Apple could be their friend

    2. The new machine we purchased cost about $150.00. Reads the new chip cards and works fine with Apple Pay. We’re told it will work with Google as well, although never seen anyone with Google whatever the heck they call it.

  2. Apple needs to make sur the Apple Pay machines are everywhere.

    Too manu merchants don’t accept Apple Pay because they dont think its worth spending money for the NFC readers.

    1. The card companies are pretty much making them want the new readers anyway. If you haven’t heard, the burden of most fraud is now being pushed away from card issuers to payment processors. So issues such as Target and Home Depot, etc are now the merchant’s responsibility. The only way around this is to use a more secure method such as the new chip readers, most of which now also have the NFC built in.

  3. Those who have swipe-only terminals have been flying without the safety net since beginning of October. Before, banks used to absorb the fraudulent charges made with stolen cards. Beginning with October, all fraudulent charges will be merchant’s responsibility. Chip-n-pin terminals (that usually also accept NFC) are the only secure solution that will prevent charges with stolen cards.

  4. All iPhone and Watch owners need to start using Pay everywhere that accepts it. Paying with Pay needs to be seen everywhere; it needs to become common to see. Once others see the convenience, they’ll feel left out, and want to use it themselves; they’ll get an iPhone for the convenience of Pay. 🖖😀⌚️

  5. Aw, come on folks. Give the poor people with old flip phones and Android junk a break. They need something to let them pay with their phone (and slow up the line up) too while trying to look cool.

  6. Where I live a CVS pharmacy was built across the street from a Wallgreens several years ago. I’ve only shopped there once, and not since I got an iPhone with Pay capability. When people ask why I don’t shop there anymore, I tell them CVS doesn’t accept Pay, and Pay is more secure and convenient than any other payment method including credit cards. Need to get the word out. 🖖😀⌚️

    1. I AGREE! I see Chase somewhere down the road deciding to no longer support NFC payment options. And as my Chase Amazon card is default card on my ApplePay that will stink! Looks like I need to find a new rewards card to make my default ApplePay card.

      BTW – Can someone explain to me why everyone says rewards don’t work on ApplePay? Every time I use my Amazon rewards card on ApplePay, I get credit towards an Amazon purchase.

      1. Your rewards programme is tied to the card. Most store rewards programmes require you to fill out a for and get a separate card (usually with a barcode) that has to be scanned before paying. Some merchants tie this to your most commonly used credit card, so when you pay with it, the system recognizes you. With Apple Pay, the card number is replaced with another one which isn’t identifiable.

        1. Predrag – I understand the store rewards not working, as the store cards don’t work yet. Every time I read something in the media about ApplePay though – they make it sound like no rewards programs work on ApplePay. Media bias against ApplePay – or “journalists” that don’t know what they’re talking about??

          1. To be honest, I still am not exactly sure how serious is this ‘no rewards programmes’ problem. I consider myself a moderately active user of rewards programmes. While I’m not a member of Costco, I do have rewards cards from local supermarkets (d’Agostinos, Food Emporium and such), drug store chains (Wallgreens, Rite-Aid) and a Target store credit card. When I pay for things at these stores that require their own card, I give it as they scan stuff, then I pay with my phone. But even those are slowly climbing on board; Kohls, JC Penney and B.J’s are apparently already working with Apple Pay (in other words, you can add your Kohl’s credit card to your phone as a payment option for Apple Pay), so the only thing that is preventing other stores from letting their cards on Apple Pay is their own ability to accept ApplePay transactions at the point of sale. Target is slowly getting there (but not yet), and others likely will soon (or eventually).

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