JPMorgan Chase CEO outlines mobile wallet strategy

JPMorgan Chase CEO Jamie Dimon
DIMON: “We’re not against cannibalising our own business or disrupting ourselves”. Photo by Steve Jurvetson (flickr)

JPMorgan Chase plans to make its debit and credit cards available in a wide array of mobile wallets — including one of its own to be launched later this year — even if that means cutting into current margins, CEO Jamie Dimon has told analysts during the bank’s third quarter earnings call.

“We want to make [your debit and credit cards] available to you with Apple Pay, in-store apps, other people’s wallets, Visa wallet, our own wallet, all of which will have benefits,” Dimon explained.

“If you’re a client and you want to use your Apple phone to pay with NFC at a merchant, then that’s fine,” he continued. “We don’t want to say that you can’t use your JPMorgan Chase credit card or debit card.

“We are going to be in other people’s wallets too and we’re going to have our own which we think will have some competitive advantage. Will it cannibalize? Sure, but we’re not against cannibalising our own business or disrupting ourselves if we’re building a better business and are gaining share.

“We want to be the people that are coming up with new ideas that are getting more of our customers using our stuff and are happier and if it reduces certain margins somewhere, so be it.”

“We’ve talked before and you’ll see more over the coming few months about our own wallet and payment capabilities,” CFO Marianne Lake added. This will “provide the capability for our customers to be able to have a much more seamless experience” while also helping merchants to have a lower abandonment rate and continuing to build safety and security with tokenization and other methods.

“We’re continuing to work on our own proprietary wallet and payment capabilities that will be piloted and then subsequently launched over the course of the next coming months.”

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