By Rachel Morey


5 Min. To Read

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Chase Bank wants Freedom cardholders to use their mobile payment system, Chase Pay. As an incentive, during the first quarter of 2018, they are expanding their 5% cash back program to include purchases made with Android Pay, Chase Pay, Samsung Pay, and Apple Pay.

This is the first time Freedom credit card customers will get the bonus on transactions made via mobile payment. The first quarter 5% cashback promotion also includes purchases made at gas stations, with phone service merchants, cable television providers, Internet service providers, and on-demand television services like Netflix and Hulu.

The Chase marketing department is working hard to reduce friction with customer adoption of Chase Pay. At the Oculus in New York City their pop up holiday market, Chase Pay Village, encourages their cardholders to try Chase Pay for the first time at vendors who accept all forms of payment, including Chase Pay. The market is open until January 7 and features holiday merchandise like candy, jewelry, and trendy toys.

Consumer expectations are high where ease-of-use is concerned. Mobile payments must be completely secure, easy to use, and easier to understand. There’s a lot of insecurity around using new payment methods at the point of sale. Not knowing whether the merchant accepts a particular form of payment or if they have the technology in place to accept mobile payment methods may prevent consumers from readily adopting Chase Pay as their primary form of payment.

For merchants, accepting Chase Pay presents clear advantages. ChaseNet is a processing network with lower costs for merchants when they take payment from a Chase-owned financial product like a credit card. Chase Pay also provides a fast transaction that reduces wait times for customers. The Chase Pay Village gathers information about which Chase Pay features consumers find most valuable. Chase wants to understand their customers’ perception of the product and learn how to make it their top payment choice.

The payment process is fast once Chase Pay is set up on the customer’s phone. The set-up process can be intimidating for consumers, though. The security for Chase Pay is identical to the mobile banking app. Customers need to sign in like they would with their online account and then agree to multiple License Agreement requirements. Fingerprint authentication is an option, which makes the app easier and faster at the point-of-sale.

Moving toward a card-less and cash-less world is a trend that banks will continue to push in 2018. Consumers who have adopted the trend are satisfied with their experience, but getting new users on board continues to present financial institutions with a challenge.

The new Chase Pay cash back promotion may be the push consumers need to try this hot trend in payment technology.

The 5% cash back bonus applies to the first $1,500 of purchases made via mobile payment methods and in qualifying categories. That’s an extra $75 for a small amount of effort on the part of Chase Freedom card’s customers.

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