Print
Email
JP Morgan Chase Pay has signed an agreement with Merchant Customer Exchange’s (MCX’s) payments technology so as to expand adoption of Chase Pay. MCX was created by a consortium of retail companies in the US in mid-2012 with the objective of competing against Apple Pay. 7-Eleven, Alon Brands, Best Buy, CVS Health, Darden Restaurants, HMSHost, Hy-Vee, Lowe’s, Michaels, Publix, Sears Holdings, Shell Oil Products US, Sunoco, Target, and Walmart are the retailers behind the creation of MCX. Together the retailers developed merchant owned mobile payment system named CurrentC.
In October 2014, MCX revealed problems with the acceptance of CurrentC mobile wallet – the app was not user friendly and email addresses of consumers were hacked. Following this, Walmart announced plans to develop its own app. Other retailers followed suit and CurrentC failed to execute as expected. Starting 2016, MCX stopped development of CurrentC and started supporting Chase’s mobile payment system.
Post-acquisition, which is likely to be completed in coming weeks, Chase Pay will benefit from acquiring leading merchants of MCX consortium as well as the non-MCX merchants. This enables Chase Pay to compete against Apple Pay and Android Pay, which are predominant in the US. Chase had supported Apple Pay earlier in 2014 but that was when JP Morgan had not launched its own payment system. It is also interesting to note that Chase Pay has not resisted Apple Pay and both the payment systems have common merchant partners. With the launch of Chase Pay, JP Morgan attracted few retailers such as Starbucks and Best Buy – both which already accept Apple Pay.
The US mobile payment market is expected to record a CAGR of 39.8% from 2017-2021 to reach US$ 9,41,309 million in transaction value terms by 2021. PayNXT360 expects M&A activity in the mobile payment segment to intensify across the value chain in near future as key players strengthen their market position.
To know more and gain deeper understanding of mobile payment industry in the US, click here.
Sign up for The PayNXT360 Insights, and get a weekly roundup of market events, innovations and data you can trust and use.
Sign Up Now
