Visa and JPMorgan Chase almost simultaneously launched apps that will allow merchants to use smartphones or tablets to accept payments via contactless cards instead of having to use the terminal.
On Tuesday, JPMorgan Chase (JPM) announced the launch of its mobile payment service QuickAccept, and on Wednesday, Visa (V) launched its app called Tap to Phone.
The purpose of both apps offer sellers a simple way to make contactless payments from customers via smartphone or tablet.
In the context of the global pandemic COVID-19 and social distancing increase in the use of technology for payment through the touch grew 40% this year, according to Visa. A recent survey showed that 48% of consumers said they would not shop at a store that only accepts cash.
The world’s largest payment processing company Visa has launched an app Tap to Phone in 15 markets, including Europe, with plans to expand in the U.S. and other markets.
Soon the app will appear in Brazil, Italy, the United Arab Emirates and the UK. In the US, the launch of Tap to Phone is scheduled for 2021.
Tap to launch Phone, for a pilot implementation together with Samsung last year.
App allows Android devices to serve as instruments of payments by Bank cards of international standard EMV (Europay, MasterCard and VISA), without any other additional equipment.
According to a study Visa, less than 10% of the 180 million micro – and small-scale traders (MSM) around the world to accept digital payments. The Visa survey showed that 63% of MSM stated that they are likely to use a Tap to Phone for their business, while about 50% of consumers said that they will use them if they were offered.
“If there are billions of phones around the world ready features, which makes their inclusion as units of reception of payments, huge,” said Mary Kay Bowman, global head of solutions for buyers and sellers Visa, in a press release. “Visa Tap to Phone may become one of the most effective ways to rethink the physical process of making purchases”.
The launch of mobile payment service QuickAccept JPMorgan opens up great prospects and will enable the Bank to compete with such mobile payments companies like Square and PayPal (PYPL).
This step is JPMorgan, the largest US Bank by assets, marks an even greater immersion in the fintech major banks.
Jen Roberts, Director General of the banking Department of Chase, said in an interview with CNBC that the Bank will transfer most of its more than 3 million small business customers for a new service. In this case, the service will be aimed at customers with an annual income of less than $500 000 that want to avoid paying a fee for instant transfer.
Visa shares, an increase of 19.26% over the past six months, fell by almost 2% last week.
Shares of JPMorgan Chase fell by 28.7% since the beginning of the year, but rose 11% in the last 6 months.