Apple Inc. , Alphabet Inc , and Samsung are all jostling for space in the mobile payments market as tech firms declares war on the wallet. The rise of mobile payments is in tandem with the growth in e-commerce, mobile connectivity and the need to evolve into a cashless society. Apple Pay is almost a year old, Google Wallet has been rebirthed as Android Pay, Samsung Pay is making some buzz, and other players such as PayPal and Square are creating niche markets.
Yet, all the jostling by tech firms to kill the wallet, a traditional finance player might swoop in with the mobile payments solution that will replace wallets. News has it that Chase; the banking business arm of JPMorgan Chase & Co has announced Chase Pay. Chase Pay is being touted as a better payments experience for in-store, in-app and online purchases.
What’s Chase Pay got over Apple and Co.
Wall Street is still wondering how Chase intends to make a name for itself in a space that is still being dominated by major tech players. To start with, consumers are tired of the red tape surrounding traditional payments systems and the ease and simple nature of mobile payments has been the reason behind their growth. Chase is a bank and not a tech firm; hence, it appears that the bank is heading into uncharted waters in its attempt to take on the likes of Apple and Google in mobile payments.
However, Chase seems to have done its homework as Chase Pay promises to fix the exact problems that have delayed the widespread adoption of mobile payments. Chase is starting with merchants by setting out Chase Pay to handle concerns about cost of payment, speed & ease of checkout, and fraud liabilities. More so, Chase Pay is built to work with existing payment tech that all merchants have – low-tech bar code scanners.
Chase’s use of low-tech scanners will make it easier for merchants to use the service since they won’t have to buy new equipment. This moves contrasts sharply with NFC-enabled tech that Apple and Google have been forcing down the throats of merchants. In addition, Chase Pay has a fixed pricing that is devoid of extra fees such as network fees and merchant processing fees.
Apple Pay might need to learn a lesson or two on keeping things simple
Steve Jobs my have to scratch his head were he to look down to see how Apple is handling its mobile payment system. Apple succeeded with the iPhone, Macs, and iPads because it kept things simple. Chase Pay is making mobile payments simple by allowing it to work on practically all smartphones; yet, Apple Pay doesn’t work on all iPhones.
More so, Chase is leveraging its existing customer base by rolling out Chase Pay to the 94 million cards it has issued – talk about a readymade user base. James Wester, research director for global payments at IDC Financial Insights says of Chase Pay has a chance to steal the spotlight from the tech players. In his words, “They have the connections on both sides to merchants and consumers, and they have an immense scale as a consumer bank,”