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Chase to acquire MCX mobile payments tech

13 March 2017  |  8801 views  |  3 chase pay

JPMorgan Chase has acquired the technology behind failed merchant-backed mobile payment service CurrentC.

MCX, a QR code-based mobile wallet joint venture launched by big-ticket US retailers to take on Apple Pay and circumvent credit card fees, hit the buffers after one if its biggest proponents Walmart began the rollout of its own mobile payments service to nearly 600 stores in Texas and Arkansas in May last year. With Walmart going its own way, MCX announced the loss of 30 jobs and the postponement of plans for a nationwide roll-out in favour of forging relationships with major banks.

Chase - one of the first US banks to commit to the merchant venture - says the acquisition will help it to expand the availability of its own-branded Chase Pay service to a wider network of retail merchants.

“When we think about ‘fintech’, we go through a ‘build/buy/partner’ evaluation to decide how we can get to market most efficiently,” says Jennifer Roberts, head of Chase Pay. “MCX has been an important partner, and their technology complements ours, so we’re thrilled to deepen our relationships with the merchant community through the purchase of this technology. This will help us get to market faster.”

Chase Pay launched in November 2016 with a handful of initial merchants, including Best Buy. Other MCX merchants such as Walmart, Shell, Phillips 66, and Wakefern will enable Chase Pay as a payment option over the next year or more, she says.

Comments: (3)

Dean Wallace
Dean Wallace - ACI - Global | 13 March, 2017, 08:25 Chase marches onward bringing merchants and consumers together directly, using their mobile phones. Is this one of the biggest "alternative payments" mechanism in the world? Certainly nice to see the hard work at MCX going to good use
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Hitesh Thakkar
Hitesh Thakkar - FIS Payments Software and Services India - India | 13 March, 2017, 14:28

@Dean, Starbucks/Square, iZettle are also good model which delivers value for small and medium size merchants but, Chase getting into CurrentC is good move. In fact, MCX was started with semi-close loop setup so Chase would have liked it.

Hope to see NFC movement ahead with Chase.

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A Finextra member
A Finextra member | 13 March, 2017, 15:14

Agree with Dean about Chase leading the payment revolution and reckon it's rightfully creating the success factors for its incubation, i.e. Intuit, MCX, etc. I've said it before and I repeat again that Chase Pay has got all the conditions and capabilities to set the world standard for a plausible payment revolution. However in a fast moving payment innovations pace, the opportunity to rule the world might be missed if it doesn't accelerate its geographical/demographical capture. 

 

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