JPMorgan Chase, aiming to get a bigger piece of the point of sale financing market, announced Wednesday (Feb. 27) that it is launching “My Chase Plan,” a tool that allows card customers to finance purchases of more than $500.
According to a report in Bloomberg, Jennifer Piepszak, chief executive officer of JPMorgan’s card business, said that with the tool, customers can pay off purchases already made over a longer period of time and will be subject to monthly fees rather than charged interest.
JPMorgan also plans to roll out “My Chase Loans,” which will enable customers to borrow money against unused credit card balances. Customers would use the Chase mobile app to choose the loan amount and have it transferred into their checking account. The executive said during the company’s investor meeting that the loans will be for bigger purchases, such as a kitchen remodel.
“This will allow us to compete in the personal loan space, importantly without taking any incremental risk, as this will be a targeted product feature for our existing customers,” Piepszak said.
Earlier in February, JPMorgan became the first bank to create its own cryptocurrency aimed at settling transactions with clients of its wholesale payments operation. It is used mainly for international and securities transactions related to blockchain, but could be used by consumers in the future, as CEO Jamie Dimon told CNBC during the investor meeting. “JPMorgan Coin could be internal, could be commercial, it could one day be consumer,” he said during a question-and-answer session.
That’s an about-face for Dimon, who famously called bitcoin a “fraud” when it was hitting record prices more than a year ago. Since then, the executive has touted the value of blockchain, the underpinning to cryptocurrency.