Chase bank announced today a big win for their Chase Pay payment wallet; the addition of Walmart as an accepting merchant, both online and in-store. This is good for Chase who will handle the processing and give its Chase Pay customers the opportunity to use the app at the largest retailer. It’s good for Walmart since ChaseNet, the merchant services arm of Chase, offers competitive pricing and also attracts the built in audience of Chase cardholders. As reported in Morningstar:
The move is the latest iteration of a long-simmering strategy by Wal-Mart to find ways to minimize fees it pays to take debit and credit card payments. Chase has said that merchants who use its suite of payments services could pay lower fees to process many card transactions than they would otherwise.
Chase, for its part, believes it is in a position to help retailers do that by offering both Chase Pay to consumers and a back-end system that processes Chase card transactions at reduced rates. Wal-Mart also said in September it would be using that system, called ChaseNet.
Walmart has their own mobile payment wallet called, of all things, Walmart Pay. Chase Pay will work alongside with Walmart Pay:
Earlier this year Wal-Mart brought its own in-app mobile payment tool to its nearly 4,600 U.S. stores, dubbed Walmart Pay. Chase Pay will become one way to pay within the app, along with credit cards or gift cards, says a bank spokesman.
For Chase, the integration with Wal-Mart is part of a coming wider roll out of Chase Pay, which will work both inside merchants’ apps and websites and in a stand-alone Chase Pay app. Chase announced the service a year ago
Overview by Sarah Grotta, Director, Debit Advisory Service at Mercator Advisory Group
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