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The Way Consumers Pay is Changing Dramatically. Is Your Point of Sale Ready?

By Cindy Turner, originally published on jpmorgan.com


From swiping to inserting and now tapping, the way we use credit and debit cards to initiate in-store payments continues to get faster, easier and safer with the introduction of contactless cards. Even before the hygiene concerns introduced by the Covid-19 pandemic, contactless payments were gaining traction, particularly in Europe, where their use began in 2014 and they have become a primary method of in-person payment in 2019.

When it comes to contactless payments, here are five things merchants should be considering:

1. Are You Keeping Pace With Consumers?

There's no question that hygiene has promoted awareness of contactless payments, but the long term value proposition is faster checkouts and fewer points of friction for the in-person shopping experience. According to Visa, doing away with card swiping, insertion or the need for signatures or PINS, means contactless card transactions can be authorized in as little as one second. 1

As an issuer and acquirer, Chase Merchant Services empowers merchants and their customers with fast, easy and unquestionably secure payment methods. In 2018, Chase began issuing millions of contactless credit and debit cards to U.S. consumers as J.P. Morgan has been promoting merchant readiness.

2. Is Your POS Digital Wallet Ready?

Digital wallets are another contactless payment method slowly being adopted in the U.S., particularly among younger consumers. Digital wallets transform a smartphone or smartwatch into a convenient and secure card-based payment method for in-store and e-commerce transactions.

Digital wallets provide valuable opportunities for all kinds of merchants to connect, interact and transact with consumers. Chase Merchant Services is helping a range of merchants use the power of digital wallets to deliver the seamless shopping and payment experiences that consumers demand.

3. Do You Have the Right PIN-less Debit Strategy?

According to the Federal Reserve, debit cards are currently the most frequently used payment method in the U.S.2 Contactless debit cards share the speed and hygiene benefits of contactless credit cards. As an added benefit, they also enable merchants to deploy debit-routing strategies that can help them dynamically monitor and manage the cost of debit card acceptance.

As Covid-19 promotes consumer awareness of PIN-less debit’s hygiene benefits, Chase is helping merchants explore and understand PIN-less debit solutions that both optimize transaction costs and enable the best customer experience.

Power your payments with Chase

4. Will You Need Fewer Cashiers?

Cashierless payments have been around for up to two decades in the form of automated fuel dispensers and self-checkout lanes at grocery and big box retail stores. At a growing number of convenience-oriented stores in the U.S., sophisticated digital sensing and communication technology now enables consumers to enter a store, select merchandise and then take it with them as their digital wallet seamlessly authenticates their identity and authorizes the correct payment.

In 2020, Forbes Insights and J.P. Morgan published Payments Potential, a survey of 300 global executives that identifies the way technology and consumer preference influences their payment strategies. The survey revealed that nearly 63% of respondents currently use, or plan to use, unattended checkout at the point of sale.

Chase Merchant Services is committed to providing our clients with payment innovation that creates great customer experiences. Our perspective as a card issuer and payment processor provides us with unique insight into what matters most to consumers. That insight helps us empower merchants with seamless, personal and convenient payment experiences.

5. How Can Your Payment Provider Help Prepare Your POS?

The consumer-driven payment innovations that provide your customers with greater speed, convenience and security at the point of sale can present you with complex new financial, operational and competitive challenges. In the case of contactless payments, some digital wallet transactions at the point of sale qualify for lower-cost card-present interchange fees while others do not. As transaction volumes increase, it's important to work with a payment processor that will help you understand your true cost of payment acceptance across all payment types.

Since 2017, J.P. Morgan has invested more than $30 billion3 in technology, with a focus on improving the way our clients receive and manage payments. Our next generation payments platform is designed to make it easier for our clients to stay aligned with rapidly evolving consumer preferences, payment technology and regulatory mandates. We are committed to helping our clients grow and protect market and wallet share through:

  • Efficient API integration of best-in-class payment capabilities
  • Cloud-enabled anywhere, anytime and any device customer experiences
  • End-to-end payment security and fraud mitigation
  • Fast, robust and scalable digital platforms for connecting payments and treasury strategies

Be Ready For Contactless With Chase Merchant Services

The rise of contactless payments is an opportunity for merchants to make the checkout process faster, safer and more convenient. At the same time, however, it creates new learning curves for customers and employees. Chase Merchant Services is uniquely positioned to bring consumer insight, digital payments technology and expertise to ensure our clients can accept their customers' preferred payment methods with greater speed, convenience and security.

Chase Merchant Services is the global payment acceptance and merchant acquiring business of JPMorgan Chase & Co. and a leading provider of payment, fraud management and data security solutions capable of authorizing transactions in more than 130 currencies. Customers benefit from custom rate pricing that helps save you money, fraud prevention tools to help keep your business secure, 24/7/365 in-house customer support and over 30 years’ of experience in payment processing.

Get fast, secure, and reliable payment processing solutions to help you run and grow your business. With Chase Merchant Services, businesses have access to:

  • Flexible solutions to securely accept card payments onsite, online or on-the-go
  • Touch-free payment options including contactless card and mobile wallet acceptance
  • Next-business day funding (with a Chase business checking account)*
  • Comprehensive online reporting and chargeback management
  • Fraud prevention and data protection
  • 24/7/365 in-house customer support

Power your payments with Chase

Further Resources

To learn more about Chase payment solutions, click here.

To learn more about the Key Trends to Drive Your Payments Strategy in 2021, click here.

To learn more about LicenseLogix services, click here.


1. https://usa.visa.com/pay-with-visa/contactless-payments/contactless-cards.html

2. https://www.federalreserve.gov/paymentsystems/2019-December-The-Federal-Reserve-Payments-Study.htm

3. JPMorgan Chase & Co. 2019, 2018, 2017 annual reports.

Businesses are required to complete an application and agree to terms and conditions at the time of enrollment. All businesses are subject to credit approval. Merchant services are provided by Paymentech, LLC (“Chase”), a subsidiary of JPMorgan Chase Bank, N.A.

* Next business day funding is available to eligible Chase merchant services clients who deposit into a single Chase business checking account.  Visa®, MasterCard®, and Discover® credit and debit transactions are eligible. All businesses are subject to business credit approval and all funds are subject to fraud monitoring. In addition, funding is subject to the terms and conditions of the merchant processing agreement. Chase must receive settled transactions by 10:00 pm EST (some businesses may qualify for a 11:59 pm ET settlement; talk to a Chase representative for more details). Funds are deposited on the next business day, excluding weekends and bank holidays. Some exclusions may apply. The listed payment brand(s) are not sponsors of this program. All marks are marks of their respective companies. Deposit products provided by JPMorgan Chase Bank, N.A. Member FDIC.