Payments

Chase Pay builds visibility by tying up with retail rewards programs

  • JPMorgan Chase is incentivizing customers to use Chase Pay by letting them concurrently gain retailer rewards points
  • By partnering with retailers, Chase hopes to build visibility for Chase Pay
close

Email a Friend

Chase Pay builds visibility by tying up with retail rewards programs

Chase Pay is gunning to get to the top of its customers’ digital wallets. Its strategy: Retailer partnerships and rewards to stake out its claim.

Its latest partner, Shell, added support for Chase Pay Wednesday, allowing people to pay by scanning a QR code after unlocking the pump at more than 10,000 Shell gas stations across the U.S. Since most gas pumps haven’t yet adopted NFC technology, it’s an opportunity for Chase to build mindshare, said David True, a partner at PayGility Advisors.

“As we go into the default payments world where payments are automatic — think about a world where everybody pays with Android or Apple Pay fifteen years down the road — Chase risks being bumped out of the spotlight,” True said.

Having merchants invite customers to use Chase Pay lets the bank control the payment experience, which is designed to let customers earn discounts through fuel rewards programs from Shell within Chase Pay, and build brand visibility at a time when non-bank mobile wallets like Apple Pay and Android pay become increasingly integrated with point-of-sale terminals.

“For all of these ‘pays’, their adoption is probably lower than [banks] would like,” said Zilvinas Bareisis, senior analyst at Celent. “By reducing the number of steps through which you pay, and by integrating with loyalty coupons, it’s one way of demonstrating that’s a good payment method.”

Shell said aligning with Chase Pay sets itself apart from competitors — an example of how retailers can tap into Chase’s vast customer base.

“Our focus has been and continues to be on providing solutions designed to simplify the customer experience, integrate loyalty, and deliver a differentiated and personalized customer experience,” said Dan Little, head of North America marketing for Shell Oil Products U.S. “With millions of households in the U.S. having a Chase Visa card, Shell mobile payment with Chase Pay is available to millions of customers nationwide.”

Current Chase Pay retail members — like Walmart, Starbucks, Best Buy and ShopRite — were originally part of the Merchant Customer Exchange (MCX) network, whose CurrentC digital wallet was phased out in 2016 after poor trial results. Chase acquired the MCX technology last year, which now supports Chase Pay. Retailers on the MCX network are some of the largest in the U.S., which should help drive Chase Pay activity. Chase offers its businesses fixed pricing without the usual fees for interchange, merchant processing or network processing, which would make Chase Pay more appealing to businesses than its rivals. That doesn’t ensure consumer adoption though, which is where reward incentives come in.

Chase has been ramping up its payments investments and partnerships over the last two years and is the only U.S. bank with scalable businesses in every major payments vertical, and in recent weeks has talked about “the payments opportunity as a continuum” that puts Chase “definitively in competition with everyone in the payments space.”

Chase Pay’s retail partnerships help deepen consumer relationships, a Chase spokeswoman said. Chase currently has 60 million card customers, 47 million of which are “digitally active.”

“It all starts with our customers and deepening relationships with those places they frequent the most,” she said, “like the pump, grocery stores, and building and expanding on relationships with brands who are leaders in those categories.”

 

 

 

0 comments on “Chase Pay builds visibility by tying up with retail rewards programs”

Member Exclusive, Payments

Payments Briefing: Is the ‘Apple Pay Later’ hype warranted?

  • This week, we review the hype around Apple Pay Later and try to determine how much of it is justified.
  • We also look at Square’s move to bring Afterpay to in-store purchases, making it even easier to pay in four – and how this greater ease could lead to overspending and growing consumer debt.
Ismail Umar | June 23, 2022
Member Exclusive, Payments

How the global microchip shortage is affecting the payments industry

  • While chip-based payment cards face the biggest threat, experts say the only aspect of payments immune to the shortage is physical currency.
  • As banks look to address the problem, one of the solutions being discussed is extending payment cards' expiration dates.
Subboh Jaffery | June 20, 2022
Payments, Podcasts, What's Happening in Payments Podcast

What’s Happening in Payments Ep. 8: Klarna and the future of BNPL, PayZen’s ‘Care Now, Pay Later’, and Mastercard’s ‘Smile to Pay’ system

  • This week, we discuss whether BNPL offers a sustainable business model for providers, and whether it’s even viable as a standalone business.
  • We also talk about PayZen’s ‘Care Now, Pay Later’ offering, as well as Mastercard’s ‘Smile to Pay’ system, and what it tells us about the future of privacy and security in payments.
Ismail Umar | June 17, 2022
Payments, Sponsored

International remittances: A money movement lifeline ripe for digitization

  • Digital transformation is simplifying how people move money around the world, yet barriers to international P2P transfers remain.
  • In honor of International Day of Family Remittances, Visa shares four tips for how policymakers can better streamline digital remittances.
Visa | June 16, 2022
Member Exclusive, Payments

Payments Briefing: PayZen wants to combat rising medical debt with ‘Care Now, Pay Later’ solution

  • This week, we explore how PayZen uses a variant of BNPL to tackle healthcare affordability in the US.
  • We also hear from Stax CEO Suneera Madhani on the gender gap in fintech.
Ismail Umar | May 26, 2022
More Articles