Chase Paymentech, a wing of
JPMorgan Chase & Co.
(
JPM
), has recently launched a futuristic payment terminal - Future
Proof. This device will enable the merchants to acknowledge various
innovative forms of customer payments like mobile wallets,
implanted computer chip cards along with traditional magnetic strip
cards as well as other newer means of wireless payments.
The new terminal, available at the entire JPMorgan banking
network, is designed to provide flexibility to merchants in receipt
of payments. FutureProof would rationalize payments made through
strip cards, EMV enabled chip cards, mobile wallets and other
numerous wireless payments and mitigate the chances of credit card
frauds. Moreover, by encouraging payments from mobile wallets, it
will help satisfy consumers' demands and unravel new business
opportunities like coupon schemes and loyalty programs.
From the customers' as well as merchants' viewpoint, the
terminal is set to alleviate the troubles they face while making
payments and acknowledging the receipt of the same. This would
further cater to the needs of the international travelers, who will
no longer require swapping methods of payments while moving from
one country to another.
However, credit card biggies like
Visa, Inc.
(
V
) and
Mastercard Inc.
(
MA
) seem to lose substantial market share to these innovators as they
are facing major revenue cuts from merchants.
Technology has become the essence of today's business world.
Therefore, keeping up with the pace of technological development
becomes inevitable for the companies' survival. JPMorgan has been
relentlessly delivering innovations to simplify banking for all.
The recently launched FutureProof terminal bears testimony to this
fact.
JPMorgan's perception of the changing ways of conducting
business operations has been thoroughly correct. Such streamlined
terminals are very popular in Europe and JPMorgan is continuously
making efforts to popularize it in America as well. This is a very
credible step as it would reduce dubious practices pertaining to
payments.
With the world going digital, the need for technology that makes
life easier has been on the rise. Therefore, introduction of a
payment terminal, which would streamline multiple forms of payments
and reduce time and money for both the parties, is going to
transform the banking scenario.
Currently, JPMorgan retains a Zacks #4 Rank, which translates
into a short-term Sell rating. However, considering the
fundamentals, we maintain our long-term Neutral recommendation on
the stock.
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