Harriet Taylor | CNBC
J.P. Morgan Chase customers will no longer be able to pay with their phones in stores beginning next year.
The bank said it plans to shut down its Chase Pay app in early 2020. The mobile payment app was launched in 2015 just as Apple Pay was gaining popularity.
“The change we are announcing is one that is intended to focus our efforts where we see consumer behavior trending and merchants investing,” Eric Connolly, head of Chase Pay, said in an email. “We see our biggest opportunity in working with merchants to provide easy payment solutions for customers through the Chase Pay button online and directly in merchant apps, which has seen double-digit growth for the last three years.”
The bank announced that it plans to add more retailers that accept Chase Pay through merchant apps including food ordering company Grubhub.
J.P. Morgan’s attempt at digital banking and payments has not been smooth-sailing. The bank in June shut down its mobile banking app Finn, meant to lure millennials with zero fees and emojis, just a year after its nationwide release. It also ended an online small business loan partnership with On Deck this year.
J.P. Morgan faced overwhelming competition from Apple. Apple Pay has been adopted by 43% iPhone Users, according to Loup Ventures’ estimates in February. This week, the tech giant also launched the Apple Card, an iPhone-linked credit card in partnership with Goldman Sachs, in its latest move to disrupt the payment space.