Monday, 30 July 2018 14:21
Chase bank concedes to Samsung Pay - with a rewards incentive
A doubling up of customer rewards points is the added carrot for US bank Chase, which has given up the fight to run its own exclusive payments app by signing a deal with Samsung Pay.
Under the deal, Chase customers will be able to use Samsung Pay’s Magnetic Secure Transmission (MST) technology, along with NFC, to pay with the Chase Pay app using contactless technology.
As an added incentive, consumers that link Chase Pay to Samsung Pay will be able to earn both Samsung Rewards points and for eligible Chase cards, Chase Ultimate Rewards points, for the purchases they make.
Chase spent over US$100 million on its investment on its own QR-code based app (inherited from failed US retailer programme Current-C) but success was minimal as consumers chose for more popular tap-to-pay wallets.
And while Chase has worked hard to build a network of retailers able to accept Chase Pay, its market reach was dwarfed by that of Samsung Pay, which is accepted at nearly all point-of-sale terminals in the US.
Jennifer Roberts, head of Chase Pay, says: “Now our customers can use the Chase Pay app at millions of merchants around the country. And Chase Ultimate Rewards customers can redeem their points more easily.”