Chase Paymentech has opened three developer labs in the U.S. to accelerate Apple Pay adoption in mobile commerce.
Merchants or developers attending labs in San Francisco, Columbus, Ohio or Tampa Bay, Fla., will complete an on-site integration of Apple Pay with their Chase payment applications, said Mitchell Scott, implementation manager at Chase Paymentech.
As announced last week, Apple Pay functions as both a Near Field Communication-based tap-and-go payment system and an in-app purchasing system. Chase Paymentech is encouraging app developers to integrate with Apple Pay in advance of Oct. 17, the date Apple is expected to activate its mobile wallet.
Those visiting a Chase lab will have access to an iPhone 6 for downloading the Apple software development kit to test it with their own payment applications, Scott added.
Chase and Apple will screen applicants who sign up for a lab visit so as to service those they deem as having the most pressing needs for integration with the in-app payment option, said Ryan Yoder, application development manager for Chase Paymentech.
Chase's SDK development team provided information about integrating with Apple Pay during a Sept. 16 online seminar.
"Chase has had a really long relationship with Apple," Yoder said of Chase Paymentech's role as an Apple Pay preferred partner.
"On the acquiring side, obviously, we are a partner to accept Apple Pay payments," Yoder said. "But on the issuing side we are a partner because of the issuing prowess that our parent company, JPMorgan Chase, has."
Chase Paymentech can certify developer integration into Apple Pay from the Chase SDK in less than 30 minutes, said Russ Mahy, executive director of technology at Chase Paymentech.
The process essentially calls for developers to download the Apple SDK, create a "sandbox environment" that addresses company background and intended uses for Apple Pay and obtain an Apple merchant ID and work with Chase Paymentech, which has authorization for access to the handset secure element. Chase Paymentech provides the needed coding for integration, thus reducing time to market, Mahy said.
Apple Pay operates on EMVCo tokenization standards, which Chase, a major Visa issuer, helped establish, Mahy said. Through delivery of a cryptogram, the in-app payments will move through the network as an EMV transaction, he added.
Chase views Apple Pay as a potential game-changer in mobile payments because of Apple's commitment to customer experience and the ease in which other developers can operate in the Apple ecosystem, Yoder said.
Any consumer who purchases an iPhone 6 or iPhone 6 Plus will be able to make purchases with Apple Pay. Apple also plans to support Apple Pay in the smartwatch it will release next year.
"We think this is a triggering event for NFC in the industry," Yoder added. "We think Apple's introduction of this will help spur on the upgrade necessary."
Merchants that Chase has approached about Apple Pay understand that millions of consumers will have the new iPhone and "it would not be a good idea to turn these people away," Yoder said.