November 8, 2016
Late last week, Chase and Walmart unveiled a partnership under which Walmart customers will be able to use the Chase Pay digital wallet to pay in physical stores, online at Walmart.com and via the Walmart mobile app. The Chase Pay agreement follows a deal signed in September between Chase and Walmart whereby Chase Visa cards used at Walmart locations would be processed using Chase’s closed-loop network ChaseNet. Visa transactions processed via ChaseNet (a portion of Visa’s network licensed by the issuer) carry lower fees than traditional credit card transactions and the network serves as the processing backbone for Chase Pay.
“We are excited by the opportunity to provide our customers with even greater convenience and value through our Walmart Pay app while expanding our relationship with Chase,” said Mike Cook, senior vice president and assistant treasurer for Walmart. “Adding Chase Pay as an option within Walmart Pay and online will create an enhanced experience for our customers.”
As its involvement with the struggling merchant-led payments consortium MCX indicates, Walmart has been looking for a way to implement mobile payments while trying to save on processing fees. A Reuters report today quoted sources within Walmart that indicated the Chase Pay deal may not be the last one of its kind. The company reportedly is in talks with “several mobile wallet companies” that will enable more options within Walmart Pay.