“With other payment processors, when a small business is looking to get paid, it can take 24, 48, sometimes 72 hours over the weekend for that payment to hit,” Bill Clerico, CEO of WePay, told CNBC. “Because we are a bank [as well as a payments processor], we can deposit their credit-card proceeds the same day, including weekends, at no additional cost.”
Some customers can already use the new feature. By year-end, it will be available on all Chase platforms. Clerico said the offering is unique to Chase, as it is the sole major bank that owns a payments business.
FinTech competitors like Stripe and Square charge an additional fee to receive payments faster than one to two business days. For example, Stripe charges 1.5 percent for instant payments.
JPMorgan acquired Silicon Valley’s WePay in December 2017. WePay was founded in 2008.
JPMorgan’s strong Q2 performance can be credited to a growing millennial customer base and continued digital innovation. The JPM Coin has garnered interest from customers around the world. The cryptocurrency will reportedly be tested with select customers by the end of the year.
Other digital projects have included the introduction of services such as eGifting on its Chase app, which now offers gift cards from over 60 retailers. It also offers a virtual B2B card created in collaboration with Bora Payment Systems that helps clients pay their vendors.
Internationally, JPMorgan introduced its E-Customs Payment Solution, which fully digitizes and automates cross-border payments of goods. The bank is also progressing further into the world of healthcare payments with its recent acquisition of InstaMed, which addresses payments issues for consumers, providers and payers.