JPMorgan Chase partners with CurrentC to offer Apple Pay alternative

Posted:
in iPhone edited October 2015
JPMorgan Chase, one the largest banks and an early partner of Apple Play, has announced plans to partner with the MCX CurrentC platform in an effort to offer its own "Chase Pay" app using scannable bar codes rather than tap-to-pay NFC technology.


Chase Apple Pay will now get "Chase Pay" alternative


In February, Chase announced to investors that it had already provisioned one million Apple Pay users, figures similar to those cited a few weeks earlier by Bank of America.

Eileen Serra, CEO of Chase Card Services, stated at the time, "we do continue to see good growth in the number of consumers that are provisioning Chase cards in their Apple Pay wallet."

Chase noted that its Apple Pay customers were on average 9 years younger than than its typical customers but earned 21 percent more, making the demographic a particularly attractive segment to serve.

The success of Apple Pay now has Chase banking on the prospects of launching its own consumer payment service, which will "will rely on relatively low-tech bar codes displayed by the Chase pay app on any smartphone," according to a report by Yahoo Finance.

MCX's anti-bank retailers partner with... a bank

To launch its cross platform service, Chase is partnering with MCX, a consortium of retailers that initially sought to convince shoppers to pay using store issued cards rather than credit cards issued by banks, in an effort to both reduce their card transaction fees and to collect more data on their customers, using the CurrentC payment app.

Chase Pay is expected to launch its CurrentC app by the middle of next year, giving Apple another six months after "the year of Apple Pay" to continue expanding the number of banks and retail locations supporting its system. Apple Pay has also yet to expand outside of the U.S. and U.K., although a Canadian bank prematurely announced earlier this month to its customers that it would be launching support soon.

CurrentC initially imposed a three-year exclusivity agreement on participating merchants, precluding them from participating in competing payment systems such as Apple Pay. However, those agreements expired this August before MCX was even able to broadly launch its new CurrentC system.

Best Buy, a MCX member that turned off its NFC terminals rather than accept Apple Pay transactions during the exclusivity period, announced this spring that it would be joining Apple Pay by the end of this year. Last month, Best Buy began turning on Apple Pay for its customers.

Last fall, CurrentC suffered an embarrassing security breach that exposed contact information for participants in its pilot program.

One of the larger problems facing CurrentC is that it requires users to turn on their phone, launch the app and present a bar code when making a purchase.

Apple Pay is designed to quickly activate with a button press on Apple Watch or supported iPhones featuring fingerprint authentication, allowing buyers to make a transaction without navigating around on their smartphone. The company has emphasized the speed of Apple Pay in its iPhone advertising (below).





Apple has also outlined that its payment service does not collect data for either banks, retailers or Apple itself, providing only a secure token that delivers money without the attached strings of customer tracking.
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Comments

  • Reply 1 of 43
    Dude. Scannable bar codes. Totally device independent. So stoked.
  • Reply 2 of 43
    who thinks every one at chase should be fired for OK'ing this dog sht idea ok making paying more difficult and time consuming, not to mention them scanners don't work on for the first few times you try. the amount of times I've had to had my phone over to the walgreens clerk to get my rewards card to finally scan
  • Reply 3 of 43
    sflocalsflocal Posts: 4,501member
    CurrentC is an abomination. There is no way that I would EVER trust this consortium with my financial information. They've already been hacked which proves to me they have zero technical experience to keep information secure. It makes me shudder to think that having direct access to customer's bank accounts makes CurrentC a prime target for future attacks.

    I'm so looking forward to CurrentC going down in flames.
  • Reply 4 of 43
    mstonemstone Posts: 11,510member

    Doesn't it require direct access to your checking account? No way! That is the opposite of secure.

  • Reply 5 of 43
    gatorguygatorguy Posts: 20,293member
    They're still pursuing CurrentC?? Why?
  • Reply 6 of 43
    lkrupplkrupp Posts: 6,812member
    Quote:

    Originally Posted by DogCowabunga View Post



    Dude. Scannable bar codes. Totally device independent. So stoked.



    And totally insecure, easily hacked as CurrentC found out earlier this year.

  • Reply 7 of 43
    Chase is my primary credit card issuer, and I like them, but if they show any decreased support for Apple Pay, I'll abandon them in a heartbeat.
  • Reply 8 of 43
    boltsfan17boltsfan17 Posts: 2,158member

    CurrentC lacks security and they want you to link your bank account with them? No thank you. 

  • Reply 9 of 43

    Chase wants to hit Amex, which launched the payment-independent consumer-tracking Plenti. That's got an even worse UX, many vendors don't support keying in your phone number or even scanning the keytag barcode (gas pumps), so you have to carry and swipe a second magnetic card.

  • Reply 10 of 43
    idreyidrey Posts: 640member
    This people are persistent! Why won't they just kill
    This MCX thing? Let me see ???? get my phone open
    an app, use barcode or doble tap a button on my ?Watch ?
    Such a hard decision, not.
  • Reply 11 of 43
    rob55rob55 Posts: 1,254member
    Quote:

    Originally Posted by Sector7G View Post



    who thinks every one at chase should be fired for OK'ing this dog sht idea ok making paying more difficult and time consuming, not to mention them scanners don't work on for the first few times you try. the amount of times I've had to had my phone over to the walgreens clerk to get my rewards card to finally scan



    I had a clerk at a Dunkin Donuts try to take my phone out of my hand when they were trying to scan the code from the Dunkin app. I pulled my hand back and said, "No, I'll just read it to you." Another time, I specifically heard the manager tell the clerk that they are, under no circumstances, to take the phone from the customer.

  • Reply 12 of 43
    nolamacguynolamacguy Posts: 4,758member
    i'd like to take this moment to announce that I, too, am announcing a payment service. Because, why not? We think you're going to love it.
  • Reply 13 of 43
    davendaven Posts: 506member
    My only gripe is that Apple didn't include the necessary hardware in the iPhone 5s to enable Apple Pay. I'm not going to buy a new phone or an Apple Watch just to get Apple Pay. That said, knowing first hand the incompetence of Chase, I guess I'll be paying the old fashioned way for some time.
  • Reply 14 of 43
    I saw an article written by some Android user talking about how great and easy to use CurrentC was. Just describing how you have to launch the app, type in your 4 digit code, which then creates a custom barcode that you then can have the clerk scan it is clear it is not great or easy to use. Not compared to taking my phone out and touching the Touch ID sensor and being done. Anything more complicated than that is just going backwards and I'd rather pull my wallet and cards out at that point.

    Apple clearly created a game changer with Apple Pay. Perhaps Apple should now take the next logical step and start their own bank and control the whole process.
  • Reply 15 of 43
    gatorguygatorguy Posts: 20,293member
    jmgregory1 wrote: »
    I saw an article written by some Android user talking about how great and easy to use CurrentC was.

    Really? Definitely an outlier then. Probably as rare as an upvote from an iPhone user.
    https://play.google.com/store/apps/details?id=com.currentc&hl=en
    https://itunes.apple.com/us/app/currentc/id912922036?mt=8

    Worth reading here too as I suspect you really don't know the truth of the matter and assume Android folks look at it differently.
    http://www.androidpolice.com/2014/10/29/android-and-iphone-fans-can-finally-agree-on-one-thing-the-new-currentc-mobile-payment-apps-suck/
  • Reply 16 of 43
    levilevi Posts: 344member
    nolamacguy wrote: »
    i'd like to take this moment to announce that I, too, am announcing a payment service. Because, why not? We think you're going to love it.

    Nice, I'll send you the access info to my checking account
  • Reply 17 of 43
    gatorguy wrote: »

    It's funny... that particular article is from a year ago.... but I don't remember CurrentC being launched.

    I remember it was being trialed in one market. Is it something you can actually use now? Or is it still "coming soon" ?

    Meanwhile Apple Pay is already in its 2nd year.

    Every time I hear anything about CurrentC it sounds like fail on top of fail.
  • Reply 18 of 43
    gatorguygatorguy Posts: 20,293member
    It's funny... that particular article is from a year ago.... but I don't remember CurrentC being launched.

    I remember it was being trialed in one market. Is it something you can actually use now? Or is it still "coming soon" ?

    Meanwhile Apple Pay is already in its 2nd year.

    Every time I hear anything about CurrentC it sounds like fail on top of fail.
    Apparently it's available to both iPhone and Android users, downloadable from the official app stores....
    if anyone has a few too many and does so on a bet.
  • Reply 19 of 43
    gatorguy wrote: »
    Apparently it's available to both iPhone and Android users, downloadable from the official app stores....
    if anyone has a few too many and does so on a bet.
    Ok... I just remember reading articles from a few months ago saying CurrentC will be delayed until 2016.

    I wonder what the apps do now?

    (not that I'm gonna try it!)
  • Reply 20 of 43
    gatorguygatorguy Posts: 20,293member
    Ok... I just remember reading articles from a few months ago saying CurrentC will be delayed until 2016.

    I wonder what the apps do now?

    (not that I'm gonna try it!)
    I gave you the link to the iOS app. Have a look then dump it.
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