JPMorgan Chase Is Launching Competitor For Apple Pay

JPMorgan Chase is launching its own payment service on smartphones, which will be a huge competitor for Apple Pay in the market.

JPMorgan announced this Monday to launch a competitor for Apple Pay, so that its customers can pay with their smartphones in stores conveniently. It has received the endorsement of many major merchants in the market already. This will be the first banking company to take advantage of the smartphone facility and many executives in this field know that this platform will eventually become customers’ preference in terms of payments for every product.

The U.S. financial institution is evidently very well aware of what the consumers will desire in the future and is taking the required actions to meet those future demands now. Customers eventually will not need to carry separate credit cards for payments and pay through their phones instead, which no one ever forgets before leaving the house. Companies will need to convince the customers to leave the traditional credit and debit card systems of payment behind them.

For now, there has not been any specific financial institution to take such a step except JPMorgan, which thinks that its application, called Chase Pay, is at a step ahead in comparison to other banks so far. It has signed a contract with Merchant Customer Exchange that consists of major retailers, such as Walmart Stores and BestBuy, to accept the payments through its application. These retailers are the biggest in USA, make more than $1 trillion sales annually, and have numerous outlets.

The Banking services company has signed to contract with the right retailers in the US market. Apply Pay has a huge rival forming up, which can be detrimental to it because its users have reported problems in signing up with retailers and accept payments. According to Reuters interview from retailers in June of 2015, approximately two-third did not accept the iPhone maker’s payment system and had no plans of doing so in the future as well.

The banking service has not made any announcement on how much will it charge for the service yet. The application will have high-level security that it promises and at the beginning, it will only work for customers who have Chase credit, debit, or prepaid cards. It is compatible with iOS and Android phones.

The financial organization will continue to work with Apple Pay and other rivals working on the same platform where the company is planning to launch its service. Others include Samsung Pay and Alphabet’s Android Pay.

JPMorgan stock closed at $63.87 on October 26.