Chase is reportedly phasing out MasterCard credit cards with Visa and has stopped using Blink, a contactless payment technology, citing its limited merchant acceptance and low customer usage, a letter sent to Chase MasterCard customers revealed.
In February 2013 Chase signed a deal with payments network Visa, whereby the bank had agreed to launch Chase Merchant Services, a payments platform powered by Visa that the lender will use to create more differentiated experiences for its merchants and cardholders.
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Under the terms of the contract, Chase will also shift additional credit and debit card volume to Visa, driving more transactions on the Visa network.
The bank will stop offering contactless payment technology Blink, as Chase believes that the banks are increasingly adopting embedded chips, which are believed to be safer than magnetic strips.
Furthermore, the contactless payment in future will mostly be executed using smartphones instead of plastic cards.
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By GlobalData
