New Chase Devices In Stores Will Accept Payments From Mobile Phones

JPMorgan Chase is taking a step toward its mobile future with an announcement today that it’s started the process of equipping merchants with newfangled devices that will accept payments both from mobile phone signals as well as cards embedded with computer chips, and the traditional magnetic strips.

Credit cards containing chips are widely used in Europe, and are more secure than those with magnetic strips, notes Reuters. Around 75% of card readers outside the U.S. take cards with embedded chips.

Chase is likely trying to catch up, as it ranked fourth in card processing among U.S. merchants in 2011. It does business both in issuing cards as well as processing transactions.

Currently, no more than 5% of card readers at the point-of-sale in America use the chip method, known as EMV. Both Visa and MasterCard are pushing for the EMV business in the States to discourage counterfeiting.

The new devices from Chase are being called “Future Proof” to advertise how they’ll be able to adapt to any further changes or advances in payment technology, including “open wallets” in mobile phones.  The machines will allow customers to quickly pay without waiting to sign a credit card receipt.

 “We, and our customers, are not going to be put in the position of playing catch-up,” said Bob Nadeau, group executive for product development at JPMorgan Chase Paymentech processing unit.

JPMorgan Chase puts new payment devices in stores [Reuters]

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  1. Blueskylaw says:

    This is such fantastic news!!! The old-fashioned way of paying was really depressing me and left me dazed and confused, with this new way of paying from my phone (which is sooo much easier than sliding a card), my life now has hope and with the extra time it saves me from having to swipe, I’ll be able to put that extra addition on to the house.

    Ohh, I just remembered, I have a dumb phone and I’m not willing to buy a smart phone since they charge both ridiculous mandatory data plan fees in addition to other made up to sound like government charges fees. I guess the addition will have to wait.

    • Whtthfgg says:

      I agree for the most part, but just recently bit the bullet. $35/month on Virgin Mobile (Unlimited Data/Web/Text 300 minutes voice). The only fees added are e911 and sales tax for a total of $1.41 more)

      • mianne prays her parents outlive the TSA says:

        Slightly cheaper is the Tmobile 4G plan from Walmart. $30 gives unlimited data/txt (1st 5Gb at 4G, EDGE afterwards) and 100 minutes. Need more talk time? Install the free app called Talkatone.

        Buy the airtime online from Callingmart, and you not only don’t pay sales tax, but can generally get a 3-5% discount off the face value. (Worth checking out for your Virgin Mobile account too)

    • JJFIII says:

      They also charge extra for that new fangled thing called the internet. I suppose you could just live in the 19th century and not want to join the rest of the world, but hey, you probably still like your rotary party line phone.
      Nobody is FORCING you to do anything, but people who like a more secure and advanced payment system can use it. So just go back to your hole and shut the fuck up

      • Blueskylaw says:

        “shut the fuck up”

        I’m sorry, did you get up on the wrong side of the bed this morning? Did your wife leave you for your pool cleaner? Why the anger?

        I already have internet at home, I don’t need it on my phone, I don’t need it in my car, I don’t need a smart refrigerator either because I know what groceries I need to buy without my refrigerators help. I would assume that the vast majority of people will survive just fine with the old-fashioned (and un-cool) swipe card without needing the latest and greatest shiny thingamajig to hit the market. Remember, the internet was something brand new and it revolutionized the way we live, that’s why I got it. The GPS revolutionized the way we drive, that’s why I also got it. A pay through your phone doesn’t revolutionize anything, it’s just a different way of doing the same thing (paying your bill).

        I welcome your RATIONAL response.

        • apple420 says:

          Well for those of us that do have phones with this capability I am looking forward to easier ways to pay. We don’t need to stop innovation just because you aren’t interested in it.
          And from what I hear these chips in cards are more secure than the magnetic stripe. Probably the reason why they are so common in other countries.
          Why all the anger about making things easier for us?

          • Blueskylaw says:

            I wasn’t disparaging chip cards versus swipe cards, I was saying my life will be fine if I continue paying using a card rather than using my phone. What will happen when you shove every function onto your smart-phone and all of a sudden you drop it in the pool while you’re on vacation? No phone, no GPS, no internet, no credit charging capability. Companies want you to get so entwined with your phone that you won’t want to switch providers. Banks do the same thing. Be wise in their ways.

        • JJFIII says:

          Point proven again. How does a smart phone revolutionize my life?
          1. No land line
          2. No internet service, i receive it over my smart phone
          3. GPS. Another device I have no need to ever update since my APP on my smart phone updates frequently AT NO CHARGE for the “new map”
          4. With this system I do not need to carry around a card that could be stolen, or subjected to a mag strip reader. It also avoids the issue of a card getting jammed in an ATM, or a mag strip becoming unreadable. It makes my payment options faster, safer and more secure
          5. A touch tone phone only changed the way people used the phone, so are you saying inccremental changes are not a good thing?
          6. My smart phone allows me immediate access to the internet NO MATTER WHERE I AM AT
          7. My smart phone allows me to get my emails NOW, instead of waiting until I am at home or some other designated location.
          8. An HDTV or flat screen TV did not change programming, only HOW you view it. This is the same as what is happening here

          You are the one who came off as a giant douche for giving that typical “I am so smart because I do not use smart phones.” Your EXACT quote was ” I’m not willing to buy a smart phone since they charge both ridiculous mandatory data plan fees”. You can stick to your last century technology.

          It is assholes like you, who think because YOU do not have a use for something, that the rest of the world does not. Get a fucking clue, the world does not revolve around yo

          • Blueskylaw says:

            I never said I was smarter than other people because I don’t need a data plan on my phone. I pay for internet in my home, I don’t need to also pay for it on my phone and pay for it in my car. A cell phone is the latest technology so I don’t know where you get off saying to stick to my last century technology (I also don’t have a home phone). You came off as a total douche bag right from the get go. I never said the technology was worthless, I basically said it’s not for me and I don’t run after the latest, greatest and shiniest thing that comes out. There is a reason companies push this technology; not because they are benevolent and thinking about your welfare, but because they will make money off of you and track your every move.

            You’re a sheep and that’s why they love you so much.

    • edman007 says:

      It’s not about being easier, it’s about stopping the card skimmers which cost the credit companies lots of money (then end up footing the bill for much of the stuff bought with stolen credit cards). The credit cards are thus pushing retailers to stop using swipes (and in europe they charge much more, to the point that many retailers refuse to accept swiping).

      If you don’t have a smart phone you can still use these devices, many credit cards can be read through their rfid chips (the chase cards have these), the downside is someone can skim your card while it’s in your wallet in your pocket without even touching you, the phone ones are slightly more secure from that point of view (though you still have to worry about your phone being stolen). The phones also let your hook into your paypal/google accounts as well, letting you pay from them (it can be useful).

  2. dolemite says:

    I’m trying to remember how many years Japan has already had this.

  3. Lyn Torden says:

    A new opportunity for hackers!

  4. Jack T Ripper says:

    I was in a focus group a couple weeks ago for this very product. It is being tested in two markets just to see how it goes. I think it is going to be like selling the first fax machine. Sure it would be great if everybody used it, but someone has to be the first one.

    The app is called Isus and it is a join venture from AT&T, T-Mobile, and Verizon. So not only will Chase be able to track your spending patterns, so will the big three mobile carriers. I’m not thrilled about that. The idea is that they will partner with more than just Chase, so you could possibly have several different cards to access rather than just Chase.

    My problem is that when I’m shopping I usually don’t have my phone in my hands. I guess for people who can’t live without checking their facebook every ten seconds, or whatever people are glued to their phones doing, I guess it wouldn’t be a problem, but when faced with the decision to pull out my phone, turn on the bluetooth, pair it to the little mobile terminal in front of me, launch an app, choose a card, and push a button… OR grab my wallet, take out my card, swipe it. Hmmmmm…. It doesn’t seem like this new way of doing things is really that cool. The next thing you know someone will build the Flinstones car and bill it as a super economical way to drive.

  5. kranky says:

    If I lose my credit card, I’m not liable for unauthorized charges.

    If I lose my phone, and someone uses it to buy things using this technology, who bears the cost?
    I’m guessing it’s me.

    And it’s not meaningfully faster than swiping a credit card.

  6. tar2008heel says:

    Wonder if Chase will start issuing cards with the chips? The cards with chips are pretty much the standard throughout Europe and much of South America. It’s not unusual to run into retailers or restaurants that don’t like dealing with swiping cards.