Chase plans to bring its newly introduced Chase Pay mobile payments solution to gas stations and convenience stores in an attempt to corner a sector known for the kind of everyday purchases that fit well with mobile.
Convenient store customers will be served greater convenience with the program from Chase, which will allow its customers to pay at gas stations with mobile payments. The bank is partnering with P97 Networks to roll out the program, creating a more streamlined payment process at these locations while also providing Chase an option to attract more customers.
“About 16 percent of consumer-spend on credit and debit cards happens at the gas pump with over 40 million transactions per day in the US,” said Don Frieden, CEO of P97 Networks. “Outdoor payment terminals, e.g. gas pumps, has the highest fraud rates which P97’s PetroZone mobile payment processing application will help prevent using multi-factor authentication, tokenization, and secure remote password authentication.
“Less than one percent of gas pumps have NFC readers, so they do not support mobile payments from Apple Pay, Samsung Pay, Android Pay, etc.,” he said.
Mobile and gas
The banking company will be rolling out its mobile payments service in 2016 and its dedication to competing with current mobile payments developers, such as Apple and Samsung, could potentially offer it front-runner status as its substantial customer base strays away from the pigeonhole caused by software developers (see more).
As a part of its plan to compete with the software giants that have developed their own mobile payments, Chase is partnering up with mobile commerce solution P97 Networks to introduce its program to gas and convenience retailers. The partnership makes sense as convenience store customers are often in a hurry, stopping for fuel and items while on the go, and mobile payments offer a faster, convenient checkout option.
Once the technology rolls out Chase will allow all its customers to pay through their mobile devices, much like Apple Pay and Android pay in which the user simply scans their device rather than swiping a credit card. Chase Pay will be added to the existing retailer’s technology, making it much easier on the bank to roll out its service.
Chase Pay users will be able to search for gas stations within their area that accept the mobile payment service through a mobile application, which is the same one they will use to pay.
The service offers a safer method in paying at gas stations, which are known as a place in which credit information can easily be stolen.
P97 is a mobile commerce platform, which focuses on bringing fuel retailers into the digital age with mobile payments technology. The partnership will also likely bring loyalty programs and marketing abilities for Chase to gas stations.
Mobile payment future
Similarly, MasterCard partnered with GM, Nymi, Ringly and TrachR to develop a series of unique connected payment devices, straying from the traditional wristband and mobile offerings in an attempt to transform every device into a payment option (see more).
“P97 will provide integration with the leading retail fuel systems and POS to enable geo-location based mobile payments at the pump and in-store payments at the POS for the new Chase Pay wallet and MCX merchant companies,” Mr. Frieden said.