Posted on 12/10/2022 4:20:23 AM PST by EBH
Chase earns more than $5 billion in revenue from its credit card portfolio every year, but now they've made it a new corporate priority to create a product intended to end the credit card business.
Chase is working on a direct payment system that will allow funds to be routed from a customer's account directly into a merchant's. This system is designed to bypass credit card processing networks and is intended to run faster than current electronic funds transfer systems. The new system is being referred to as a “pay-by-bank” product.
Although Chase has already been involved in a similar system (Zelle), this method has not been widely accepted by merchants. Chase aims to displace payments for “rent and bill payments as well as cash, high priced debit, and cheques.” The bank is also reportedly making sure it is ready for the “potential demise of credit cards.”
CEO Jamie Dimon has also threatened to fire any senior leaders who get in the way of this new initiative
Chase also faces internal backlash where this new initiative is concerned. The commercial bank will be building a product that competes with credit cards from the consumer bank. This competition could certainly cause internal resistance. The CEO, however, is having none of it.
Dimon was reportedly facing pressure from some of the nimbler fintechs, so he pushed the leaders of his two largest divisions to set aside their differences and collaborate on the new payment processing system.
"If I hear that any of you aren't sharing information with each other, or you're hiding information, you're fired," he said to the 15 executives that gathered for the meeting in New York.
(Excerpt) Read more at msn.com ...
Notice there is no pushback allowed or you are fired. Chase is looking to be the first on the block (pun?) to put this into consumers hands.
Wow, wow, wow. This move by Dimon would indicate the pilot testing the Fed is doing now is going very well.
Are they giving up the fees as well?
In other words, Chase can cut off your ability to use electronic payment from your Chase account if they feel like it, for example, some Chase employee saw a social media post they did not approve of.
Yep... Digital currency through the backdoor...
Put it into consumers’ hands?
SNORT.
More like shove it down our throats.
“Are they giving up the fees as well?”
You can bet there will also be an instant realtime fee per transaction.
FU Chase.
Get off of and stay off of social media. Kill the beast. Deprive the Twitters, Instagram, kReddits, etc. of any revenue or power over you. I have never had any such account. FR is as "social" as I get. Eschew these beasts before it's too late.
The way this reads is they are walking away from $5 billion in fee revenues. The question is what is replacing that revenue? Whatever it is has to be more profitable than the credit card.
Uhhhh, this isn’t new.
Sounds just like the Visa/debit card I’ve been using for decades.
The banks have been using this system internally for a while. It is faster and more efficient. And…they cut out the middleman.
This is blockchain tech. Crypto isn’t dead. They just don’t want YOU using it.
Sort of but the funds move basically instaneously.
Just had a question from a business colleague regarding their Chase 360 Account. They are eliminating the overdraft line of protection. In the process of eliminating it they are also eliminating the overdraft fees. Sound great until you dig deeper and the bank will pick and choose what gets paid.
Chase appears to be eliminating all types of credit or debt lines. They are just taking them away getting ready for the new currency system.
Sounds like a normal debit card to me. What is so special about it? People use credit cards because they don’t have money in the bank.
I don’t see how this is any less anonymous than what we already have. What it does do is it has no “float” time, and it probably gets them out from under consumer protection laws that gives them primary responsibility for fraud, etc. As others have said, like a debit card.
Chase currently is the bank for Amazon’s credit card. Just throwing that puzzle piece out there.
They’re going to charge the five billion but be free of the CC infrastructure costs.
they are eliminating the credit card, period.
Have a $5k credit card with Chase? Poof, all gone.
Have a $1K LOC with Chase 360, poof all gone.
Look over hear, hear is the fancy new currency card...
With rising interest rates, the cost of the money tied up between transactions and payment due dates must be deemed to be more than than the fee revenue.
jswag
hear...hear me now over here.
Will I still get airmiles?
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