JP Morgan Chase & Co. (JPM) - Get Report said Wednesday it is pulling the plug on its stand-alone Chase Pay app, a move that comes after the bank's recent decision to cut its losses on two other fintech initiatives.
In a statement, JP Morgan Chase said it would shut down the standalone Chase Pay app early next year.
The New York bank in June shut down Finn, its digital bank, and in July cut ties with fintech company On Deck, Bloomberg reported.
The bank launched the payment app four years ago to compete with Apple Pay (AAPL) - Get Report and a raft of other offerings in the area, but the market in the U.S. has been slower to develop than some analysts had expected.
JP Morgan Chase said it now plans to shift gears in a bid to get more online merchants to accept its payment app.
The bank said that customers will soon be able to use Chase Pay in the apps for Grubhub (GRUB) - Get Report and its portfolio company LevelUp, in addition to Starbucks (SBUX) - Get Report , United (UAL) - Get Report , Shell (RDS.A) , and Atom Tickets, which already accept the bank's payment app.
The bank's customers "are using the Chase Pay button on merchant websites and in merchant apps, and now their tap-to-pay Chase cards more than ever," said Eric Connolly, head of Chase Pay, in a statement. "So, we're shifting our focus to expand Chase Pay's presence in more merchant apps and websites."
Pablo Rodriguez, a spokesman for JP Morgan Chase, said the bank could not disclose the number of online merchants that accept Chase Pay or "speak specifically to external studies."
The bank is "focusing our efforts where we see consumer behavior trending and merchants investing," Rodriguez wrote in an email.
"We see our biggest opportunity in working with merchants to provide easy payment solutions for customers through the Chase Pay button online and directly in merchant apps, which has seen double-digit growth for the last three years," he wrote.