JPMorgan Chase is one of the most successful financial firms in the world. It should come as no surprise, then, to find out that this company is upping its game to compete in the mobile banking market. Last month, Chase’s CEO of consumer and community banking Gordon Smith informed investors that the mobile payment landscape was likely to become more confusing prior to becoming easier to understand. Smith did ease the sting of this statement, though, by saying, “But it will become simpler.” To make a long story short, this means that by the time things shake out in the mobile payment world, Chase Pay will do all that it can to be one of the easiest to use options that is still doing business. And the system has several features that will help it to stay in the game for a while and to successfully compete for a larger market share.
This announcement from Smith was meant to bring investors back to a view of the industry that closely resembles that of the earliest days of the mobile market wars. The sentiment then was: “One of these technologies will win out, but no one knows what it is.” This is a feeling that many remember from just a few years back when Google Wallet failed to live up to expectations. This service struggled to get merchant, customer and even banks to adopt it. Things reverberated more when the Isis Mobile Wallet, which changed branding to Softcard (in order to avoid any connection with the Islamic State terrorist group) pretty much died quickly. This death led to Google purchasing Softcard assets, and led to the popularity of the new Android Pay.
Apple Pay launched publicly in 2014, and started a whole new slew of mobile wallets, and eliminated the old though of only one company “winning” the mobile wallet war for supremacy. In fact, experts now believe that multiple third party providers will have successful mobile wallet products and that banks will now begin to launch their own, branded versions of this type of technology. In other words, it is no longer a battle where one winner takes all. The new theory has evolved into customers choosing a mobile wallet that has a lot in common with how they choose banks, cars or even computers. They will choose a mobile wallet that suits their needs or a brand that they have experience with. Wallet providers, therefore, will be ready to oblige consumers with different wallets with different features for people to choose from.
For the sake of argument, though, let’s say that the vision behind Chase’s offering is crystal clear. Smith said that Chase wouldn’t be investing as aggressively in its mobile wallet if it thought it was going to wind up as an “also ran” behind other mobile payment systems. No, Chase wants Chase Pay to be one of the top dogs.
But will Chase be able to pull this off? Well, the company has a brand name that many people are already aware of and comfortable with. This company is known for being a longstanding player in the financial world, so that will likely make many consumers feel safe in trusting their mobile payment needs to Chase Pay. Smith is also very experience in this field, and will help to lead Chase Pay into the trenches successfully. It also appears that Chase Pay will have plenty of features that consumers look for in a mobile wallet system. We will all have to wait a bit to see, but some experts believe that this mobile payment system does have what it takes to successfully stand as a mobile wallet victor when it’s all said and done.