In the last year or two, a number of major companies in both the tech and financial services industries have launched their own mobile payment platforms as a means of potentially getting more consumers on-board with the idea of using their smartphones and other devices to make a purchase. Now, another competitor has thrown its hat into the ring, and partnered with one of the best-known chains in the U.S. to do it.
Chase Pay, the mobile payment venture from JPMorgan Chase and Co., was announced last October but didn’t receive much fanfare because it wasn’t expected to roll out for a few more months, according to a report from Digital Transactions. Though it hasn’t launched yet, Chase Pay will be accepted at all 7,500 Starbucks locations nationwide before the end of 2016, and will also be included in the extremely popular Starbucks mobile payment app, which currently requires consumers to refill their accounts on a regular basis.
How does it work?
Chase has already had some of the infrastructure for Chase Pay in place for a while now, thanks to its three-year-old closed-loop processing system ChaseNet, the report said. This is an offshoot of the VisaNet platform. When a purchase is being made, Chase Pay users will have a barcode pop up on their phones that they can scan to complete the transaction, in much the same way Starbucks’ current system works. This platform is also finding popularity with other retailers as well. This platform, like other mobile payment systems, also adds more security to each transaction than
“The feedback we’ve had from merchants has been terrific,” Gordon Smith, chief executive for consumer and community banking at Chase, recently told investors at a major presentation, according to the site. “The requests for meetings from merchants have been terrific.”
What else is involved?
In addition to this, Chase Pay will also be part of the mobile platform option CurrentC, which is run by a group of major international businesses, the report said. For now, these include CVS, Exxon, KMart, Sears, Shell, Sam’s Club, Wendy’s Wal-Mart, and Target, among others. However, CurrentC has not launched yet, and is currently undergoing a beta test in Columbus, Ohio, before it is rolled out more broadly. Altogether, the consortium is made up of more than 70 well-known brands. However, both Target and Wal-Mart have announced plans to launch their own mobile payment platforms, so their participation going forward may be subject to change.
Certainly, with so many mobile payment platforms already available or close to being released, it’s important for small businesses to determine where they stand when it comes to utilizing these platforms as well. Most experts agree that there is a coming wave of consumer adoption that should hit in the next few years, and those companies that adopt early too could position themselves quite well.Back To Blog