Chase Pay: A Notable Entrant
to U.S. Mobile Payments
JPMorgan Chase recently revealed its digital payment solution Chase Pay,
which represents Chase’s ambitious vision for the future of payments.
 Partnered with MCX to enable Chase Pay in the CurrentC
wallet and for MCX’s 40 merchants and over 100,000
locations – driving 1/4 of U.S. retail spend – to accept
Chase Pay.
 Key piece of JPMorgan’s strategy to build an integrated
payments business:
- Chase Paymentech global acquiring
- ChaseNet closed-loop payment network
- Chase Pay digital wallet
 Expected to be available in mid-2016 through Chase
Paymentech and third-party gateways including 17 partners.
 A digital wallet designed to simplify the payment experience
for Chase customers in-store, in-app, and online.
 Operates via barcodes or geofenced in-app payment in a
proximity context and branded pay buttons in-app or online.
 Chase has notable scale:
- 1/2 of U.S. households are Chase customers
- #1 debit and credit card issuer (its customers spend
$707 billion on their cards annually)
- Chase Paymentech is the #1 wholly-owned merchant
acquirer by volume
Value Proposition
 Chase Pay is positioned to be simple, rewarding, and secure
for both consumers and merchants.
 Consumers will be able to present shipping info, payment
details, and loyalty information in one tap.
 Chase is promoting Chase Pay to merchants as a lower cost,
simpler form of payment: they will pay “one fixed fee,”
“no network fees,” and “no processing fees.” We interpret
these remarks to mean one simple, bundled, percentage fee
per transaction. Merchants also have no fraud liability.
 In our view, the merchant proposition seems compelling,
and we expect significant investment to build consumer
awareness/adoption.
CHASE PAY IS...
MERCHANT
CUSTOMER
simple
simple pricing
one-tap
payments
rewarding
simpler rules
loyalty
rewards
secure
tokenized data
protects my
information
Acquirers &
Gateways
Merchants
 Should I enable
Chase Pay? How?
 What solutions
to prioritize and
promote?
 What potential
impact on my
value added
services?
 Should I enable
it? If so, when?
 Can I enable it in
my app or site?
 How to enable/
position/protect
store card?
 What is best for
my customers?
Considerations for Payments Stakeholders
Consumers
Issuers
Networks
Other Wallets
 How will Chase
build awareness?
 Why use it?
 Where to use it?
 How to use it?
 Do I need a
similar offering?
 Can the
networks
deliver similar
functionality?
 Will other banks
request similar
offerings?
 How should I
respond with
price, rules,
or features /
functionality?
 How to position
bank apps vs.
mobile wallets?
 Opportunities
for cooperation
(e.g., CP-in-AP)?
 Need to support
barcode?
For more information please contact:
Marc Abbey, Managing Partner, marc.abbey@firstannapolis.com
John Grund, Partner, john.grund@firstannapolis.com
Lee Manfred, Partner, lee.manfred@firstannapolis.com
U.S. Headquarters
Joshua Gilbert, Partner, joshua.gilbert@firstannapolis.com
David Woynerowski, Partner, david.woynerowski@firstannapolis.com
Sources: Company announcements and First Annapolis Consulting observations.
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Chase Pay: A Notable Entrant to U.S. Mobile Payments
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