Chase, MCX Partner to Enter Wallet Wars
Oct. 29, 2015
Chase made a big splash this week when it announced not only will it launch a wallet to compete with Apple Pay, Samsung Pay and others, but it will partner with MCX and its large base of merchants. Chase said Chase Pay, which it expects to be available in mid-2016, will support in-store payments at all merchants that accept MCX’s CurrentC solution (either through the CurrentC app or through the Chase Pay app) by Chase’s 94 million cardholders. For card-not-present merchants that sign on, Chase said cardholders will be able to use Chase Pay to make in-app and online payments.
At the point of sale, the solution will not use NFC to transmit transaction information. Like CurrentC, Chase said it will scan QR codes at the POS to make the payment. While it won’t be available for half a year, the partnership is a positive for MCX and its founding merchants, which had not been especially visible in the previous year with the introduction of Apple Pay, Android Pay and Samsung Pay.
“Featuring Chase Pay within the CurrentC app will give customers greater flexibility, convenience and value when they pay with their mobile device,” said Mike Cook, senior vice president and assistant treasurer at Walmart Stores, Inc. “This gives us an opportunity to simplify payments for Chase’s extensive customer base, deepen loyalty in a way only MCX can and enhance the customer experience through added services consumers expect from a mobile application.”
Chase has described Chase Pay as a “closed-loop network,” which it is able to do because of a 2013 deal with Visa under which it rented part of Visa’s network. Chase transactions are, essentially, its own. As a result, and under the agreement with MCX, merchants will not be charged network or processing fees.