Nearly a year after the Chase Pay app shutdown, JPMorgan is now ending its Chase Pay digital wallet. Let’s look at the sequence of events that led to this decision.
JPMorgan Chase is closing down its Chase Pay digital wallet after endingOpens a new window its standalone app in early 2020. According to the noticeOpens a new window posted on JPMorgan’s website, the bank will remove the option of transacting using Chase Pay from all merchant websites and apps by the end of March 2021. The bank decided to shut down the app as the product did not perform as per the expectations. The online retailers preferred other options such as PayPal to offer customers a convenient way to pay for purchased goods.
“As technology has evolved, so has our strategy for integration at the merchant point of sale,†JPMorgan spokesman Pablo Rodriguez said in a statement. “We are incorporating the most popular features directly into the Chase mobile app and Chase.com,†which includes paying with points and logging receipts.
Chase Pay was launched in 2015 as a QR-code-based app with an investment of about $100 million. The app was a result of CurrentC and Chase teaming up to create benefits for both customers and merchants. At the time, Apple Inc. had launched Apple Pay, and payment networks Visa Inc., Mastercard Inc., and American Express Co. were all making headway into the mobile payment arena. Hence, the bank saw the Chase Pay app as a potential competitor against apps introduced by tech giants like Apple, Google, Samsung, and the payment networks.
JPMorgan was eyeing faster adoption of its digital payment systems, which could challenge its rivals. But, the initiative never really progressed. This led to JPMorgan discontinuingOpens a new window its smartphone app in 2019. The app was used by the customers to make payments at brick-and-mortar stores. However, at the time, customers still preferred using physical cards when paying in person. Considering customers’ inclination, JPMorgan had assured them that they would still be able to use Chase Pay on the websites and apps of retailers that accepted it.
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Chase Pay Timeline
In July 2017, Chase Pay teamed up with PayPal to expand its mobile payment services. The partnership allowed customers to add Chase cards via Chase Pay to PayPal accounts.
A year later, the bank joined forces with Samsung. The partnership meant that Chase Pay customers could link their accounts to Samsung Pay on Galaxy phones. The deal allowed customers to use Samsung Pay’s magnetic secure transmission (MST) technology, along with NFC, to pay with Chase Pay at merchants across the U.S.
However, in August 2019, the bank decided to stop investing in the app and shut down its operations completely. Three months before this, the bank had announced the shuttering of Finn, its mobile banking app.
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Competitors’ Edge Ahead
According to a studyOpens a new window by Pymnts.com, less than 1% of online merchants accepted JPMorgan’s digital wallet as of mid-2019. Meanwhile, online merchants accepted about 70% of the digital wallet of its rival PayPal. However, this did not dent the hopes of JPMC as it continued to persuade more merchants to offer Chase Pay as an online option.
Since then, plenty of merchants have shown an urge toward simplifying the checkout process. Some merchants even cut down on the number of payment options on their pages. This was predominantly observed when more consumers were making purchases on mobile phones. It panicked the merchants as they feared that the payment-option overload might cause consumers to abandon their electronic shopping carts before checking out.
According to a Pymnts.com studyOpens a new window , in 2020, Chase Pay wasn’t among the most common buy buttons provided on merchant websites. Even payment networks such as Visa, Mastercard, and American Express have been withdrawing their individual pay buttons and teaming up on a new online checkout option as they fight back to stand against PayPal’s popularity.
As the bank faces stiff competition from its competitors, Rodriguez said, “JPMorgan is working closely with our merchant clients on ways to integrate our digital experiences within their own respective sites,â€
Besides, the bank is also encouraging customers to add their Chase-issued credit and debit cards to their PayPal accounts and shopping sites and apps.
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In conclusion
JPMorgan continues to reduce its services across the mobile payments industry. Its latest move comes a year after the bank shut down the digital wallet’s mobile app, which started in 2015 to compete with rivals, including Apple Pay. It remains to be seen how the bank copes up with the competition in the digital payment market as its popularity is at stake at the moment.Â
Do you think JPMorgan will be able to stay relevant in this digital payment market amid the growing competition? Comment below or let us know on LinkedInOpens a new window , TwitterOpens a new window , or FacebookOpens a new window . We’d love to hear from you!