Kroger and Chase Pay Team Up for Mobile Push

December 14, 2017         By: Steven Anderson

We’ve heard word out of Kroger before, as it’s eagerly pressed forward to add more digital to its lineup. That’s especially true following the recent Amazon / Whole Foods affair, where grocery stores are now pretty much forced to add digital options or go the way of the mom-and-pop dodo post-Walmart. Now, word has emerged that Kroger has teamed up with Chase Pay for a pretty big 2018.

The word notes that, thanks to the new connection, Kroger will be able to offer mobile payments services through Chase Pay starting in 2018. It won’t roll out all at once, sadly, but will rather start up with “select retail markets”.

The move is said to be part of a larger overall strategy known as the “Restock Kroger Plan,” a plan which calls for Kroger to offer a greater value to customers. Mobile payments are one big part of that plan, along with several other factors. Word from Kroger’s chief information officer Chris Hjelm says that mobile wallets will not only add value for the customer—providing a faster, easier and potentially safer way to pay at the checkout point—but also help offer expense reductions for Kroger itself.

Kroger’s digital ambitions are nothing new; about three months ago, we saw Kroger actively lowering prices on staple goods and improving its mobile and online shopping options. While the early word wasn’t exactly a big win—Kroger had online coverage in around 1,000 of its 2,419 locations—it was still a point to note. Now, by adding Chase Pay, it may be able to cover some of those 1,419 locations that don’t have online shopping capability yet. That’s assuming it doesn’t just go back to the 1,000 already expanded on as part of the “select retail markets” strategy. Though it’s got a point with the expense reductions; we’ve already seen mobile payments offer customers the ability to act as their own checkout lane, which could mean plenty of unemployed cashiers, but also savings for Kroger.

Covering select markets is all fine and well, especially as a first step. But if Kroger starts seriously ignoring flyover country in favor of the big names, it may do itself more harm than good going forward. Don’t forget your roots as you branch out, Kroger.