JPM Unveils New Payment Terminal

Chase Paymentech, a wing of JPMorgan Chase & Co. ( JPM - Analyst Report ) , 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 - Analyst Report ) and Mastercard Inc. ( MA - Analyst Report ) 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.