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JP Morgan Chase has unveiled its plans to roll out Chase Pay in mid-2016 with the support of retailer-backed mobile payments consortium MCX. Unlike Apple Pay, the service will use QR code scanning (instead of NFC) and will provide shopper's data to retailers. Despite Chase's high banking penetration rates of 1 in every 2 American families, TechCrunch believes these features will create challenges for widespread adoption.
This feature certainly sets Chase Pay apart from competitors’ offerings, but it could be challenged with regard to consumer adoption. For a number of reasons, QR code scanning has never taken off in the U.S. In addition, while this system would have the advantage of being supported by a larger number of smartphones, it won’t be as seamless as using a tap-and-pay technology like Apple Pay. With NFC-based payments, users don’t have to launch an app – they just hold their phone near a supported terminal. But Chase Pay will require users to unlock their phone, find and launch MCX’s CurrentC app, display the QR code, and wait for it to be scanned.
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