Stocks News

JPMorgan to shut down digital wallet, a year after discontinuing app

JPMorgan Chase & Co will discontinue its Chase Pay digital wallet by March 31, 2021 according to a notice on the bank’s website.

Moreover, the bank will remove the option to pay through Chase Pay from all merchant apps and websites.

Further, customers can link their Chase credit cards to their preferred shopping sites or apps and to their PayPal accounts.

However, JPMorgan had partnered with payments processor PayPal Holdings Inc in 2017.

The aim was to expand the digital wallet’s reach by allowing users to link their Chase Pay and PayPal accounts. In fact, the users could also use reward points to make purchases.

Launched in 2015, Chase Pay wanted to rival the then debuted Apple Pay along with Visa.

It’s contenders also included MasterCard and American Express’ respective payment network buttons.

Due to emergence of customers’ preference of payment by card, the bank discontinued the Chase Pay app in 2019.

Meanwhile, the bank had clarified that the service would continue on websites and retailer apps.

Less than 1 percent of online merchants accepted JPMorgan’s digital wallet while 70 percent of online merchants accepted PayPal’s service.

As a result, merchants are eyeing for a simplified checkout process, with many slimming down the number of payment options on their pages.

The fear of payment-option overload is causing people to abandon their electronic shopping carts before checking out increased.

This is due to more customers purchasing on mobile phones with small screens.

Currently, the bank is encouraging customers to add their Chase-issued credit and debit cards to their PayPal accounts.

Check all the recent news updates and share market updates


Get 90% Discount on Brokerage Now! Open Demat Account