Reviving an old brand with a new partner is something that the merchant acquiring industry does well. Or at least it’s something acquirers have a lot of experience doing.
To that end, JPMorgan Chase and Visa yesterday released a letter of intent to launch Chase Merchant Services, “a payments platform powered by Visa.” The deal includes a 10-year renewable partnership agreement, new issuing agreements, and a new custom acquiring gateway connection to VisaNet that will only process JPMorgan Chase-issued Visa card transactions for Chase acquired merchants.
The focus is on delivering merchant services that enhance the customer experience for both Chase merchants and cardholders, with targeted offers and discounts at the point of sale being the bespoke goal. The partners plan to make the venture operational by the end of this year.
From a press release:
“We look forward to expanding our partnership with JPMorgan Chase and further driving the migration to electronic payments by offering superior and unique value to merchants and cardholders,” said William Sheedy, Group President, Americas, Visa Inc. “As technology drives the evolution of the payments industry there are more opportunities to deliver value for merchants and cardholders at the point-of-sale. Visa is focused on innovating to allow clients of all sizes to differentiate based on their strategy, priorities and customer needs. This effort with JPMorgan Chase is one example of Visa’s increased flexibility and desire to partner with financial institution and merchant clients to provide greater service to cardholders through tailored and value-added solutions.”
JPMorgan Chase also had some talking points related to the new venture in its Investor’s Day deck from Feb. 26:
A customized processing and end-to-end payments platform, leveraging an expanded, 10-year strategic partnership with Visa:
- Provides merchants with an additional option for consumer payments
- Chase Visa Cards continue to benefit from Visa’s U.S. and international acceptance network
Enables Chase to build direct relationships with merchants:
- Flexibility to negotiate pricing
- Ability to streamline operating standards
- Opportunity to work directly with merchants on differentiated issuing and acquiring solutions
Click here to read more from the press release.
