Will the Chase Pay option help Walmart increase mobile payments?
When Walmart launched Walmart Pay within its mobile app earlier this year, one of the primary criticisms was that it worked only at Walmart. Consumers, critics argued, want a payment option that works across many retailers. It appears as though Walmart has come to a similar conclusion following the announcement that it is adding Chase Pay to its mobile app.
According to a Wall Street Journal report, Walmart is adopting Chase Pay primarily to lower the fees it pays for credit and debit card transactions. Chase offers lower fees to retailers that use its back-end system for processing transactions using its mobile payment option.
Back in July, as reported on RetailWire, it appeared as though Walmart felt no sense or urgency to expand mobile payment options for its customers. At the time, the company touted internal surveys that showed three out of four users giving Walmart Pay a five-star rating and 80 percent who would recommend it to others. To further back up the last point, Walmart said it found that 88 percent of purchases using Walmart Pay were coming from repeat users.
Walmart has not offered a comment as yet on whether it will seek to promote one payment option over another or if it will take a laissez faire approach and work with whatever choice is made by its customers.
Both Chase and Walmart’s mobile payment options use QR codes that are scanned at the checkout. One of the downsides to using QR codes is they require users to unlock their phones and open an app to pay for their purchases. Apple Pay, as a point of contrast, uses near field communications technology, which allows users to simply touch their phone at the point of sale to complete a transaction.
- Wal-Mart to Offer Chase Pay Service – The Wall Street Journal (sub. required)
- Walmart adding Chase Pay as another payment option – USA Today
- JPMorgan plants digital payment flag at Wal-Mart – Reuters
- Walmart jumps into mobile payment fray with Walmart Pay – RetailWire
- Walmart in no hurry to add other mobile payment options – RetailWire
- Chase Pay gets boost from retailers in mobile payment race – RetailWire
DISCUSSION QUESTIONS: Will the addition of Chase Pay to Walmart’s app spur increased usage of mobile payments in its stores? Do you expect Walmart to further expand its mobile payment options going forward or will it stick with its own solution and Chase’s?