Chase Launches 'Chase Pay' Payments Service to Compete with Apple Pay

[tmanto02]

Haha QR codes are still a thing?

 

[randian]

The majority of merchants are going to need EMV compatible devices anyway for the EMV chip card liability shift, and 99% of the EMV compatible devices are coming with NFC for Apple/Android Pay anyway.

That's not what I'm seeing. A bunch of big merchants like Publix have new terminals and so far as I can tell they do not support NFC (no text or logos on them to suggest NFC), only the dumb "stick card in slot and wait" version of chip reading and mag-stripe reading.

 

[tchadrainwater]

another sleeping pill. Zzzz

 

[Michael Goff]

Except that Google will siphon off your information and sell it. LIKE THEY DO EVERYWHERE.

What special info do you think they'll sell that places don't get whenever you use a credit card?

 

[Misaki]

Oh boy, another DOA payment system.

You mean the same DOA payment system.

Banks want to cut out the credit card companies too.

 

[ojobson]

Also, if you mention "QR code" and "new payment thing" in one sentence you know you goofed up.

Next!

WRONG! If you mention "QR Code" and anything else at all, then you've done it wrong.

 

[Nick Edinburgh]

If they can't see that this is doomed to be DOA, you really have to wonder who is running this company.

In the current political/capitalist system, this is a rational decision. Technically-illiterate investors will buy into the spiel in sufficient numbers to give the shares a short term boost, and the executives responsible short term 'results'. By the time it crashes and burns, other Big Ideas will be pulling in other gullible investors, and the execs will have moved on to foul up at other companies, their previous history spun into someone else's failure.

That's why the Chinese are winning. They think long term. It's our system that needs to change.

 

[alexgowers]

premise = all you have to do is show a QR code to a cashier at a location that supports... Reality = Cashier looks blankly back at you 'what's that thing?' I've never seen that before, we take card here....

It sounds like a great idea, platform agnostic and flexible. Cheap to roll out. But Zero customer benefits and complicated to use mean no shop is ever going to consider it. Maintaining qr codes could add do much seller effort that a new employee is need just to run this system! Fail

 

[ds2000]

Dear Chase,

If you abandon Apple Pay, I will abandon you. You lose.

- A paying customer of yours

Yep, I'm liking using it over here, I carry less cards and have just changed credit card provider as my bank of 4 years didn't support apple pay or contactless. QR codes... no thanks

 

[Robert.Walter]

I wonder how much Chase is going to blow implementing and marketing its here a pic, there a pic, everywhere a pic pic dead on arrival MCX QR-based rubbish.

I can't believe how anybody with an NFC equipped Apple device will waste any time fooling around with MCX as its easier to just use a credit card (and so avoid giving MCX access to your bank account and losing your loyalty awards from the card issuer.)

Thinking on this again, this could be an attempt by Walmart/MCX to get a major credit card bank on board with the CurrentC kludge. In this way, the banks gain access to the non-Apple Pay et al non-depositor customers who refuse to give MCX/Walmart direct access to their accounts.

My guess is that the price of entry for banks electing to participate in the MCX experiment, MCX merchants have required card networks/banks to substantially cut their card fees.

 

[QuiteSure]

There are still people out there who have old smartphones or new smartphones that don't have NFC. This is a possible solution for them. While I love Applepay on my Watch I know it's not available to everyone.

And I disagree with those who complaint about QR codes. I use them on my Watch to board airplanes and on Amtrak and to buy food at Dunkin' Donuts, they all work great, as long as the QR code is in the device to be scanned by the retailer/service provider.

 

[2457282]

Chase is the company behind my united Explorer card. It's my main card and the main Apple Pay card. As long as I can continue to use Apple Pay I guess I am not bothered by their silly decision to partner with a company that still has not been able to launch their system. I don't really see this going very far, but it shows how valuable your information is that companies are trying so hard to find a way around the tokenization that Apple has implemented that is so secure that they aren't able to figure out who you are or what your buying habits are.

 

[ConnYoungy]

When will they realise people don't want "Apple Pay competitors" they just want ONE coherent payment system? Just because theres a market for you to make a fraction of a penny on our purchases doesnt mean we want your half-cocked systems.

 

[kemal]

Starbucks app uses optical scanning of mobile device screen. Starbucks employees state how stupid it is that Starbucks doesn't take Apple Pay.

Good luck Chase.

 

[bruinsrme]

However, you have to think of the purpose of this and who will benefit from it.

As already mentioned, this is pretty much DOA with MCX desperately flailing around to catch up with CurrentC. However, with going with a bank and their services, who is going to benefit from this?

Not the customers with accounts at the bank. No; the only people to benefit from this are the stockholders with shares in Chase Bank. Like I said before:

With Credit unions, all profits are shared between the members of the credit union.
With Banks, all profits are shared between the stockholders/shareholders of the stock in the bank.

Because of that alone, I dropped my bank (at the time BofA) and took my money to a credit union, which earlier this year, received a dividend check from their last year's profits. And this is with me having 2 sets of checking/savings accounts (one personal, one for my business), and interestingly enough, my two children received checks as well for having their minors accounts there.

If there is one whose terms you qualify for, you may want to look at joining a credit union.

BL.

the last bank I had was SeaFirst. While I was in the Navy and at sea BofA purchased the bank. Because I didn't respond to a letter they send out the account type was changed. this new account had a list of fees associated with it. When i returned I challenged the fees and the Branch manager giggled. I went back to base, changed my direct deposit to Navy Federal Credit Union. The BofA account was closed immediately after the first deposit in NFCU.
For the life of me I don't understand why people subject themselves to predatory fee based banking.

 

[0098386]

I refuse to buy anything from anyone that doesn't take Apple Pay.

Can't tell if you're being serious or not. I guess that's the point!

 

[_Refurbished_]

Privacy and security aren't selling points in the US because people don't care much about either. The former because tons of people are perfectly willing to give out tons of data to get 20 cents off a single item, and the latter because consumers have zero liability for card fraud. Perceived convenience is going to be the big driver behind its adoption, and if people don't consider chip inconvenient, they won't bother.

That said, chip the way the US implemented it takes much longer than elsewhere.

Privacy and security are both major factors, to deny this shift in consumers is pretty short sighted. No one likes identify theft. I've been there, done that. It's not fun and a waste of time. If you pair convenience and security, these other systems have no chance. People will choose phone payments and businesses will shift how they distribute discounts. Consumers won't have to choose whether or not they save 20 cents, the distribution method of the coupon will change.

Large establishments getting hacked (Target) raised awareness about the importance of payment security. Chip readers are slower and more unreliable than magnetic strips, yet more secure. This further proves the point that security is the most important factor going forward, whether some consumers care about it or not.

The reason why Apple and Android Pay will succeed isn't driven on "perceived" convenience, it's driven on actual convenience. Once retailers catch up and people can use NFC the way it's designed, there is no system on the market that is easier to use. I've used Apple Pay a handful of times and it's awesome. The problem is with the merchant support, not the system. As merchant support grows, and people purchase new iPhones and Androids that support phone payments, NFC phone payments will skyrocket.

 

[Plutonius]

When I saw the title, I thought that "Chase Pay" might be some sort of collection agency . I hope they don't drop Apple Pay when they implement this.

 

[Xavier]

Hopefully Chase doesn't cut support for Apple Pay do to this (I don't know if someone mentioned this earlier in the comments). I would be very disappointed in my otherwise perfect service from Chase.

 

[cwt1nospam]

Wrong. Apple, well most companies really, only tries their best when faced with strong competition.

Glassed Silver:mac

They seemed to have tried their best to create Apple Pay and there really isn't a decent competitor to it out there. Even those still in the development stage suck! And this will not be a strong competitor.

 

[TheAnimal]

Actually, it's usually the other way around. Idiot boss telling the tech guys to implement lame brain ideas.

IT Guy: Hey Boss, I know that our cards are supported on Apple Pay, and it's a convenient, secure and simple way for our customer to use them. But we have developed this confusing, kludgy competitor that is less secure and less user friendly.

Boss: Cool, let's do it.

Customer: Yawn.

 

[_Refurbished_]

I disagree. Many, many people like getting store awards and targeted coupons. You'd have to be nuts not to take advantage of such savings.
Heck, many of us frequent the same stores and restaurants EXACTLY BECAUSE THEY KNOW US WELL, and treat us accordingly.
Being anonymous is not beneficial to most people.
--
As for purchasing privacy, banks have long sold targeted advertising spots and aggregate shopping data. That hasn't changed one bit with Apple Pay.
In fact, a main reason why banks pay Apple is because Apple Pay allows our purchase info to continue to flow to them... while cutting out the merchant.
The biggest difference is, now the merchants have to pay the banks to target us, instead of being able to do it on their own.

I didn't realize companies can still obtain our information via banks, that said, I disagree with the other things listed.

- Getting store rewards won't disappear with phone payments. Even if it did, you would still be able to use coupons for discounts. Discounts were available long before "reward" systems
- Being anonymous isn't beneficial to most people, but the security of their personal information is beneficial. Chip readers are slower and more unreliable, yet are the standard as of 2015. The importance of increased security is more important in 2015, than it was in 2010. This is one of the reasons why we're seeing chips finally being implemented in the U.S.

 

[smallcoffee]

Damn, just when I got my Sapphire Preferred card from them...looks like the annual fee just became unjustifiable

I think you would be paying the annual fee regardless of whether they launched Chase Pay or not.

 

[smallcoffee]

No, the chip cards is another disaster. Good for security, but terrible for customer convenience. Use one at Targrt and you'll know what I'm talking about.

And you can argue Apple Pay/Samsung Pay is more secure.

But not everybody has a smartphone nor has the latest smart phone with the NFC chip required for Apple Pay. I think Apple Pay is better, and more secure, but you're not thinking about the broader picture.

 

[DDustiNN]

I think a lot of people are confused here.

Just because Chase is starting up a new payment method, doesn't mean they'd "pull" Apple Pay support. (Is that even possible? Can't you just add any credit card to Apple Pay? Serious question.)

And it certainly doesn't mean that it needs to "compete" with Apple Pay.

Because the big thing to remember is... not everyone has an iPhone (or even an iPhone with NFC). Chase Pay could be used by Android, Windows phones, older iPhones, iPads/tablets, etc... Even iPhone users who are still old-fashioned and don't trust Apple Pay storing their credit cards.

Chase Pay is not a bad thing, you guys. It's certainly not going to be a fast and easy as Apple Pay, but I don't think it's meant to be a replacement. Just another option.