JPMorgan Chase Bank N.A., the consumer banking arm of JPMorgan Chase & Co., announced in a press release that launch of its own digital wallet Chase Pay.
The new Chase Pay, which will allow consumers to pay retailers using their smartphones, is an alternative to Apple Pay.
JPMorgan adds in the press release that the Chase Pay will address some of the biggest problems that merchants experience, like the cost of payments, merchant fraud liability, and speed of checkout.
The Chase Pay will also be using the same technology used in scanning gift cards, to allow merchants to easily implement Chase Pay in their stores.
JPMorgan adds in the press release that Chase Pay also allows merchants to connect its loyalty program directly into the payment experience.
For consumers, Chase Pay is a secure way to pay online as it uses tokenization technology in-store, in-app, and online. It also allows consumers to pay using their own smartphone devices.
Gordon Smith, the CEO of Consumer & Community Banking at JPMorgan Chase & Co., adds in the press release that the new Chase Pay solves a number of "pain points for consumers and merchants."
"It will improve the customer experience and drive down the cost of payments," he said.
Reuters adds that JPMorgan is the latest company to try to profit from consumers' use of their smartphones.
A lot of financial executives believe that consumers will one day prefer to pay for everything they purchase using only their smartphones.
JPMorgan adds in the press release that it has partnered with Merchant Customer Exchange, a group of major retailers for its Chase Pay app.
Wal-Mart, Target, Best Buy and Shell are among the major retailers that are part of the Merchant Customer Exchange.
Reuters adds that retailers in the Merchant Customer Exchange earn more than $1 trillion of sales annually.
It also has over 100,000 outlets.
Reuters adds that Apple Pay has been struggling to sign up retailers to accept their payments.
Apple Pay lists Best Buy in its website in the "Coming Soon" section, but no mention of Wal-Mart yet.
JPMorgan said in the press release that Chase Pay will be available in mid-2016 to bank's 94 million customers across credit, debit and pre-paid card accounts.
