Chase Pay, JPMorgan Chase's mobile wallet, has just landed an unlikely early partner with a history of going it alone: Starbucks.
The deal will incorporate Chase Pay into the Starbucks mobile app for payments at more than 7,500 Starbucks locations, starting in the fall. Starbucks' mobile app, which is largely developed and maintained in-house, is used for over 10% of its U.S. in-store sales.
Chase and Starbucks have worked together before. The companies previously partnered on a cobranded Visa credit card called Duetto, which launched in 2003 and shut down in 2010. More recently, Starbucks chose Chase as its processor for nonmobile payments after the coffee chain's relationship with Square began to phase out.
"We are really excited to be able to partner with Starbucks. We've had a long relationship with them and it is a terrific company," Gordon Smith, chief executive of consumer and community banking for Chase, said Tuesday during its 2016 Investor Day presentation.
Consumers can use Chase Pay on Starbucks.com as well as within the mobile app to reload a Starbucks card. The Starbucks app also supports Apple Pay as a funding method, even though Apple's wallet is a potential competitor to Starbucks' own mobile payment system.
Chase said in October that it reached a deal with the Merchant Customer Exchange to offer Chase Quick Pay within its developing CurrentC mobile wallet, which is still in a testing phase.
