Despite the rapid rollout by many large FIs and retailers, mobile wallet adoption among customers hasn’t gained much traction. So players like JPMorgan Chase chose a different strategy: partner with retailers and tech companies – rather than stand on their own – and appeal to merchants as much as to customers.

The bank’s newest partnership, announced yesterday, is with Boston-based Level Up, which will now allow Chase Pay users to order ahead through the app at thousands of participating restaurants. “Now our customers can order ahead from thousands of restaurants, skip the line and even have eligible offers applied automatically at checkout,” a Chase spokesman told Bank Innovation. “So customers can save time and money by using the Chase Pay app, and Level Up merchants can engage a broad base of customers with targeted offers. It’s a win-win for consumers and merchants.” The bank said it plans a national rollout for this feature over the coming months.  

Last month, Chase also debuted its wallet with two major brands: Best Buy (1,400 locations) and Starbucks (7,500 locations). The deal with the coffee giant promises even more mutual product launches in the near future (besides the prepaid Visa card). “We will announce future products at the appropriate times,” the spokesman said.

So how does the bank identify Chase Pay partnerships? From its vast data of customers’ buying habits, of course. “We’ve conducted customer research with our customers to understand their purchasing behaviors and to find ways to make their buying experience better, even beyond payment,” the spokesman said. “That’s why we partnered with merchants our customers already love and sought out partners like LevelUp that offer innovative solutions to enhance these experiences.” Next year, the bank will also integrate Chase Pay with fuel partners, such as Shell, for quicker payments at gas stations.

And even though Chase Pay adoption has been slow, the bank bets its 26 million mobile user base will soon accelerate the growth. “Consumers have little incentive to pay with a phone, and merchants haven’t been given real value in accepting mobile payments,” the spokesman said. “We’re turning the payments ecosystem into a one-stop shop for Chase customers. Before, when a Chase customer paid with their credit card, they may not have known what their balance was or would need to shuffle through items to find loyalty cards, coupons, etc. With Chase Pay, everything is in one place when you check out.”

Looking forward, the bank looks to integrate loyalty features into the wallet.