JPMorgan Chase will discontinue its Chase Pay mobile app in early 2020. FinTech executive Monica Eaton-Cardone notes this development as sign of an overall lag in merchant, consumer acceptance of contactless payment technologies in the U.S.
Americans lag behind in mobile payments-despite being more secure.
- In China, digital wallet payments accounted for 46% of $2.5 trillion in consumer spending last year.
- In the U.S., digital wallet share was 5% of $2.6 trillion and to further attrition that,
- JPMorgan Chase will discontinue its Chase Pay app in 2020.
Entrepreneur and IT executive Monica Eaton-Cardone says Americans like their plastic credit and debit cards and are in no hurry to change.
“Consumers are accustomed to receiving cash back and travel rewards from their card issuers, and have no incentive to abandon these benefits.” – Eaton-Cardone
Security concerns-unnecessarily, in Eaton-Cardone’s view—also play a role in the slow U.S. adoption of new payment technologies.
“While merchant concern is understandable, the truth is that digital wallet applications are the most secure payment method available on the market.” – Eaton-Cardone
What can merchants and solution providers do to accelerate the pace of U.S. adoption of contactless payment?
Monica Eaton-Cardone notes the following important questions to ask:
- Why has mobile payment been so quickly adopted in places like China and India?
- Why not the U.S.?
- What are the primary obstacles to growth of contactless payment in America?
- What are companies like Apple doing to influence consumer behavior?
- Why is contactless payment so much more secure than credit or debit cards?
- What protections from fraud does it offer merchants?
- What is device authentication?
- How do geolocation and two-factor verification help fight fraud?
About the Author
Monica Eaton-Cardone is an entrepreneur and business leader with expertise in FinTech and eCommerce. She has co-founded a number of successful companies and currently fulfills executive management roles within each organization. She is a well-known champion of women in IT and a sought-after speaker.