JPMorgan Chase has reached an agreement to acquire Merchant Customer Exchange’s (MCX’s) payments technology to help expand Chase Pay, the smartphone-based payment system that enables Chase customers to pay retailers using their devices.
The transaction, which is likely to conclude in the coming weeks, will enable Chase Pay better compete with Apple Pay and Android Pay in the growing mobile-payments market in the US.
MCX, a network of America’s largest merchants such as Wal-Mart, Target, Best Buy and Shell, acted as the premier launch partner for Chase Pay in October 2015.
Upon completion of the deal, major merchants that are part of MCX consortium as well as non-MCX merchants will be able to easily integrate Chase Pay as a digital payment option in the future.
Chase Pay head Jennifer Roberts said: “When we think about ‘fintech,’ we go through a ‘build/buy/partner’ evaluation to decide how we can get to market most efficiently.
“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.”
Earlier in December 2016, Chase announced an investment in LevelUp to bring the ‘order ahead, pay ahead’ experience to customers at thousands of quick service restaurants.