Shell and Chase: A Technology Team up of Convenience
The effort to make paying for Shell gasoline an easier process was behind the decision in early June to have company stations accept the Chase Pay app by the end of the year. It will be located within Shell’s own mobile app and will also be available for use in purchasing items inside company stores.
By merely scanning their phones, Chase customers who visit a Shell station will be able to avoid having to carry a credit card or waiting in line to pay for their gas. At the same time, they’ll be able to receive rewards and coupons that are specifically directed toward them. One key facet of this technology is that it helps eliminate merchant fraud liability.
The continued increase in the use of mobile phones in making payments in all walks of life means that a definite market exists when it comes to the popularity of such technology. The sheer number of customers that Shell interacts with on a daily basis is also indicative of the potential, since more than 20 million customers visit Shell stations every day. Those stations currently total more than 14,000 around the world.
From a consumer perspective, the app will be used as part of the Fuel Rewards program for Shell customers to enhance loyalty with the brand. At present, every gallon purchased saves user three cents and since the program was first created in 2013, it’s resulted in an estimated savings of $480 million. The average savings per customer is 22 cents per visit.
The growing income of the millennial generation, which prefers such technology, is one of the key drivers behind the decision. From Chase’s perspective, it helps them bond with a demographic that has a tendency to change banks on a more frequent basis.