The mobile payments market is going to converge on a much smaller number of players. Success requires adoption at scale, and while it may not be a winner take all market — Visa, Mastercard, American Express and even Discover have been able to co-exist and both Apple Pay and Samsung Pay are stronger — there’s not room for every entrant to succeed.
Chase is pulling the plug on their consumer standalone Chase Pay effort early next year.
JPMorgan Chase & Co. JPM, -1.27% said Wednesday that Chase is closing its stand-alone Chase Pay app in early 2020, although customers will be able to use Chase Pay in more merchant apps in the coming months. New customers coming on board include Grubhub GRUB, +1.20%, the bank said in a statement. Eric Connolly, head of Chase Pay, said customers are using the Chase Pay button on merchant websites and in apps more than ever. “”So, we’re shifting our focus to expand Chase Pay’s presence in more merchant apps and websites,” he said.
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This move likely makes sense for Chase, whose solution was less popular with consumers than Apple Pay and Samsung Pay despite having a large customer base and a popular banking app. Processing transactions for large merchants, on the other hand, is a model with which they may find some success.