Chase Pay the first payment app offered by a large US bank; JPMorgan Chase & Co (NYSE: JPM), is now here sort of.
The solution officially launched on the App Store and Google Play on November 21, but it can only be used at Best Buy (NYSE: BBY) and a handful of other locations. It can also be used through apps offered by Starbucks and some gas stations as well as in Walmart Pay.
There are also plans to roll out Chase Pay at Walmart, Phillips 66 gas stations, Conoco filling stations, Shoprite and The Fresh Grocer supermarkets and Shell convenience stores within the next year or so. Chase and Walmart made a big deal of the availability through Walmart Pay a while back so that is probably a done deal.
Chase Visa, Debit and Liquid Cards are automatically loaded into the app so customers can pay with Smartphone. Payment will be done at a Best Buy and Starbucks via a Quick Read Code. Payment at the other stores is done through those companies apps.
Chase depositors will be able to track their account balances and credit and view transactions from the past 90 days, Jennifer Roberts; Chase’s President of Strategic Alliances and loyalty solutions, told Business Insider.
Roll Out or Beta Test
It is not clear if this is really a rollout, or simply a beta test. Chase has been pretty slow in rolling out its payment app when compared to Apple and Alphabet.
Like Walmart the monster bank seems to be concerned about security. Chase Pay is based on the optical Quick Read (QR) code technology which is theoretically more secure than the NFC wireless that Apple Pay and Android Pay rely upon. Walmart Pay also uses QR Code but Walmart itself refuses to accept either Apple Pay or Android Pay in its stores.
My guess is that Chase will spend several weeks or months beta testing Chase Pay at Best Buy, Starbucks and Walmart before rolling it out on a wider basis. That way it can avoid embarrassing glitches and plug security holes.
Once the beta test is successful Chase will probably start rolling out Chase Pay to other retailers and merchants. That might take some time because most American retailers have so far refused to get on the payment app bandwagon.
The market Chase is trying to crack is potentially a big one. Business Insider expects app payment in the US to reach $75 billion this year and $503 billion by 2020. Expect other banks like Bank of America (NYSE: BAC) and Capital One (NYSE: COF) to follow Chase into the payment app business in the near future. For better or worse, smartphone payment is the future.
If you’re interested in Chase Pay this website provides all the details.