Drivers will be able to use JPMorgan Chase’s (NYSE: JPM) mobile wallet; Chase Pay, at some Shell gas pumps soon.
Shell will test the use of the quick read (QR) code based Chase Pay at some filling stations and convenience stores in the Denver area and Chicagoland, The Drive reported. Drivers will be able to use Shell’s fuel rewards program when they pay with Chase Pay. Shell’s fuel rewards offer drivers 5¢ to 10¢ off a gallon of diesel or gas if they buy a specific amount of fuel.
Chase Pay communicates with devices like cash registers by scanning a code with a phone’s camera. That makes it cheaper and easier to adopt and more secure than apps like Apple Pay which use wireless near-field communications (NFC) to communicate with cash registers or ATMs.
The Drive did not say whether Shell will start accepting other popular QR Code based solutions like Alipay and Walmart Pay at its stations. Chase needs to justify the $100 million it invested in mobile-wallet technology, the Drive reported. Unfortunately, the Drive did not say what Shell stations will accept Chase Pay.
Chase Pay is the Ninth Most Popular Payment solution
Chase Pay is the ninth most popular mobile wallet in the United States, Bernstein Research reported.
The number one mobile payment app in America is PayPal (NASDAQ: PYPL), followed by Visa Checkout and Amazon Pay, Pyments.com reported. PayPal dominated the sector with 61% of the market.
Visa Checkout from Visa (NYSE: V) was number two with 20%, and Amazon Pay from Amazon (NASDAQ: AMZN) was number three with 16%, Bernstein found. The much-hyped Apple Pay only had 12% of the market, while Google Pay, formerly Android Pay had 11%.
The bottom line is that PayPal owns the mobile payment market in the United States. Lesser solutions like Chase Pay will need special deals with retailers in order to get over.
A big moneymaker for Chase Pay would be to become the first mobile wallet accepted at Kroger’s (NYSE: KR) 2,796 supermarkets and 1,445 fuel centers. Integrating Chase with Kroger’s incredibly popular Fuel Points rewards card program; which offers 1¢ off a gallon of fuel for every $100 worth of groceries purchased.
Another smart move for Chase would be to get Chase Pay embedded in apps like Instacart (which delivers groceries for Kroger) and GrubHub (NYSE: GRUB). Expect to see more mobiles like Chase Pay forming exclusive relationships with retailers in a bid to increase usage.