Guess what? Two of the highest-profile companies supporting mobile wallets in the United States have joined forces.
On Thursday, PayPal Inc. (NASDAQ:$PYPL) and JPMorgan Chase & Co. (NYSE:$JPM) announced that they would enter a partnership, thus allowing the bank’s customers to connect their Chase Pay and PayPal accounts.
Essentially, the deal will help to broaden the reach of J.P Morgan’s Chase Pay service. The deal, which will go into full effect by 2018, will also allow Chase customers to use their reward points to make purchases through PayPal. “These are parallel strategies,” said Jennifer Roberts, the JPMorgan executive in charge of overseeing Chase Pay. “We want to be where our customers are.” Additionally, PayPal will be able to process Payments on ChaseNet, which is JPMorgan’s payment network.
It is thought that the agreement should help solve a number of problems for JPMorgan. And, as part of the deal, PayPal will add support for Chase Pay as a payment method for those who process payments via Braintree.
Regardless of the partnership, the companies will continue to compete in other areas. In fact, just last month, JPMorgan linked its smartphone apps to a digital money-transfer service called Zelle which rivals PayPal’s Venmo unit.
Featured Image: twitter
