JPMorgan Chase & Co. is set to launch a rival to Apple Pay that will allow consumers to pay retailers using their smartphones in stores.
The largest US bank said it has already won the endorsement of a major group of merchants.
It is the latest company to try to profit from the prevalence of smartphones, which many financial executives believe will one day be consumers’ preferred way to pay for everything from milk and eggs at the supermarket to a rental car at an airport, Reuters reported.
No clear frontrunner has emerged in the business yet.
JPMorgan believes its smart phone application, known as Chase Pay, has one key advantage: the caliber of retailers it has brought on board, Gordon Smith, chief executive of the bank’s consumer business, told Reuters.
The bank has signed a deal with the Merchant Customer Exchange, a group of major retailers including Wal-Mart Stores Inc., the largest US retailer, and Best Buy Co. Inc. to accept payments through the bank’s technology.
Retailers included in the Merchant Customer Exchange ring up more than US$1 trillion of sales per year and have over 100,000 outlets.
Rivals like Apply Pay have struggled to sign up retailers to accept their payments. In June, Reuters interviewed the top 100 US retailers and found that two-thirds said they did not plan to accept Apple Pay this year.
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