Chase Pay to become first 3rd-party digital wallet on Wal-Mart’s mobile payment app

mobile payment
JP Morgan Chase has forged partnerships with multiple retailers before Wal-Mart.

Retail giant Wal-Mart is set to build on its already successful mobile payment app by adding payment options to its digital wallet in the coming months.

Wal-Mart Inc. is in talks with several companies to offer more payment options in its Wal-Mart Pay app. Starting next year, Chase Pay will become the first third-party digital wallet on Wal-Mart’s website and mobile payment app.

JP Morgan Chase has forged partnerships with multiple retailers before Wal-Mart. Chase Pay currently works at 7,500 Starbucks locations and almost 1,400 Best Buy locations across the US. Chase plans to continue its expansion through partnerships with ShopRite, Conoco, The Fresh Grocer, 76, and Shell.

Wal-Mart Pay, a digital wallet built into the company’s mobile application, enables customers to use their smartphone linked to credit cards, debit cards and Wal-Mart gift cards for all purchases.

Customers simply choose the payment option at the checkout counter within the app and activate the camera to scan the code at the register. An e-receipt is sent to the users smartphone immediately after the purchase is finalised. Wal-Mart does not currently accept other digital wallets like Apple Pay or Android Pay, which are the most popular digital wallets in the US.

Wal-Mart Pay was launched in December 2015 after testing in select markets. After a slow rollout, customers in all of the retailer’s 4,600 US stores can now use the mobile payment app.

US mobile payments accounted for an estimated $67 billion in 2015, and are expected to grow to $83 billion in 2016, or 24% of all purchases made via smartphones, according to the latest Forrester Research data.

Daniel Eckert, senior vice-president of services at Wal-Mart US, said in an interview that the retailer would tweak its marketing for the app after the most frequent users turned out to be Gen X customers, born from 1965 to 1967, and baby boomers born from 1946 to 1964.

“The target demographic during the launch of a technology product tends to be younger, more male, so we have had that target market in mind,” Eckert said.

More Here [reuters]


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