Kroger adds Chase Pay mobile payments

Kroger Co. said Tuesday that it would begin accepting mobile payments through Chase Pay, the digital wallet offered by JPMorgan Chase & Co., in select retail markets and e-commerce programs next year.

The agreement with Chase marks the Cincinnati-based retailer’s first foray into mobile payments. Walmart unveiled its own in-app mobile payment offering in 2015, and recently said its use could soon surpass that of Apple Pay.

Kroger said payment solutions are a part of its sweeping Restock Kroger Plan, which encompasses store resets and other initiatives, including entering into partnerships to create customer value and forming alliances to accelerate digital and e-commerce platforms.

Chase Pay uses a barcode that will allow Kroger to roll it out to stores without deploying additional technology, according to a Bloomberg report. The report said Kroger hopes to roll the payment out to about 600 stores next year.

“Technology is transforming our customers' experiences and greatly influencing how we are reimagining the store of the future,” Chris Hjelm, Kroger's chief information officer, said in a statement. “Mobile wallets enable a more seamless shopping experience for our customers and at the same time, can help us drive cost out of our business.”

Several food retailers, including Walmart, ShopRite and The Fresh Grocer, already accept Chase Pay for online purchases. Chase Pay users can spend earned credit card points through the app and receive special offers from merchants that can be applied at checkout.

“This is a significant win for our customers who now will be able to save time and money using Chase Pay at one of the top retailers in the country,” said Jennifer Roberts, head of digital products at Chase. “Kroger is one of the places our customers shop the most, and it's great to deliver more value to both a key partner and our customers.”