Chase Aims to End Their $5 Billion Credit Card Business, CEO Will Fire Anyone Who Gets in the Way

Chase earns more than $5 billion in revenue from its credit card portfolio every year, but now they've made it a new corporate priority to create a product intended to end the credit card business.

Chase is working on a direct payment system that will allow funds to be routed from a customer's account directly into a merchant's.

The Master Plan

This system is designed to bypass credit card processing networks and is intended to run faster than current electronic funds transfer systems. The new system is being referred to as a “pay-by-bank” product.

Bookkeeping:

Although Chase has already been involved in a similar system (Zelle), this method has not been widely accepted by merchants.

Chase aims to displace payments for “rent and bill payments as well as cash, high priced debit, and cheques.” The bank is also reportedly making sure it is ready for the “potential demise of credit cards.”

CEO Jamie Dimon has also threatened to fire any senior leaders who get in the way of this new initiative.

Credit cards often trap consumers because they bundle payments, consumer protections, and lending.

Sticky Situation

Habitual spending, as well as loyalty marketing, are two things that make credit cards a sticky business.

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