Chase Pay
Research / Product Design / Lorem ipsum
Chase Pay
Chase's Freedom Cash Back card has consistently outperformed not only it’s own cards, but the competition as well, year over year. It’s pricing structure and 5% cash back rewards make it hard for other cards to beat.
Chase’s goal of providing customers with the easiest access to money management and most cutting edge technology, offered a clear opportunity to compete in the digital payment space.
With an average of $707B in annual sales, 94M credit accounts, 34M transactions and 16M logins a day on average, activation rates for rewards were down. With the recent launch of the new Chase mobile platform, the opportunity was clear.
Hypothesis
1. Introduce a payment specific mobile experience for Chase customers for use both online and in store to enable greater activation and usage.
2. Start by focusing on a target market and test the potential for growth, allowing for greater flexibility in the mobile payment space over the next 2 years.
Solution
Utilize the existing Chase mobile platform and leverage 3rd party services like MCX for it’s extensive network of leading retailers in the US to deliver the service and product in phases. We started by learning more about customers' mobile payment behaviors, and the systems already in place to deliver on a short-term pilot, allowing for experimentation within a specific market.
Phase 1: Rollout of the Chase Freedom App, providing customers access to view and redeem rewards at merchants and send or request money.
Phase 2: Launch o the Chase Pay merchant platform (MCX and Blackhawk) online – the first step in delivering new backend payment system.
Phase 3: Go to market with a new mobile payment service, providing customers access to all payment methods and cards where ever Chase is accepted.
Results
Phase 1: Because of the limited feature set of the mobile app, customers loved the fact they could pay using rewards but wanted more. Overall activation rates increased by 66% after the first 6 months of the initial launch.
Phase 2: The launch of Chase Pay online went live at the same time as Phase 1. Because of the limited baseline of merchants, market penetration was still low. However, the learnings gained from both a backend and customer facing perspective provided rich data to help with an even more successful go to market plan for Phase 3.
Phase 3: The roll out of Chase’s holistic digital payment service launched in October 2015. It addresses some merchants’ biggest challenges:
1. Cost of payment, merchant fraud liability and speed of checkout.
2. Utilizes easy to implement technology that many merchants already have (gift cards).
3. Opportunities to connect with merchant’s loyalty programs directly into the payment experience.
4. A complete payments system that works directly with merchants to drive down cost of accepting payments through; fixed pricing and no fees.
It addresses customer challenges by:
1. It uses tokenization technology in store, in app and online.
2. Loyalty programs will be available directly in the Chase Pay experience.
3. Chase Pay will work on all smartphones for ease of use at the register.
