Wal-Mart Pay in talks with several mobile wallet companies

Mon Nov 7, 2016 3:19pm EST
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By Nandita Bose

CHICAGO (Reuters) - Wal-Mart Stores Inc (WMT.N: Quote) is in talks with several mobile wallet companies to offer more payment options in its Wal-Mart Pay app, an executive at the world's largest retailer said, after signing up JPMorgan Chase & Co (JPM.N: Quote) last week.

Starting next year, Chase Pay will become the first third-party digital wallet on Wal-Mart's website and app, they said on Thursday.

Customers can pay within the app with any major credit, debit, pre-paid or Walmart gift card.

Daniel Eckert, senior vice-president of services at Wal-Mart U.S., said in an interview late on Friday that the retailer would tweak its marketing for the app after the most frequent users turned out to be Gen X customers, born from 1965 to 1967, and baby boomers born from 1946 to 1964.

"The target demographic during the launch of a technology product tends to be younger, more male, so we have had that target market in mind," Eckert said.

U.S. mobile payments accounted for an estimated $67 billion in 2015, and are expected to grow this year to $83 billion, or 24 percent of all purchases made via smartphones, according to the latest Forrester Research data.

Apple Inc's (AAPL.O: Quote) Apple Pay or Alphabet Inc's (GOOGL.O: Quote) Android Pay are the most popular digital wallets, and U.S. retailers have launched many mobile payment apps in the last two years.

But acceptance has been slow, largely because most systems require new equipment at stores.   Continued...

A man talks on his mobile phone in front of a Wal-Mart store in Sao Paulo, Brazil, February 16, 2016.   REUTERS/Nacho Doce