The largest U.S. bank JPMorgan Chase & Co. is entering the fintech ring dominated by players like Square, PayPal Holdings, and Fiserv, with a service for small business owners, reports CNBC.
What Happened: JPMorgan is introducing a fast-funding fintech service paired with a checking account called QuickAccept, which will allow businesses to take card payments seamlessly via a mobile app or a contactless card reader. Users of the service will receive proceeds in their Chase accounts, the same day.
QuickAccept’s highlight is free of charge fast-funding, unlike competitors, which charge 1.5% in fees to make instant transfers.
“Our competition either doesn’t have same-day funding, or they charge for it. We think it’s a great differentiator for businesses because getting money into their account quickly is so important as they manage their cash flow,” Max Neukirchen, CEO of JPMorgan’s merchant services arm, said in the interview with CNBC.
Why It’s Important: Twitter co-founder and CEO Jack Dorsey found an opportunity in the struggle of small businesses to accept card payments in 2009 and launched Square, which is now a leader in the space managing payment volumes of $100 billion annually, according to CNBC.
“They came out with this whole dongle to process stuff and it was a great idea. They did all stuff we could have done that we didn’t do,” JPMorgan CEO Jamie Dimon said at a conference in 2019.
The bank is getting deeper into the fintech space, thanks to its 2017 acquisition of payment processor WePay.
JPMorgan wants to migrate more than three million small business customers to the QuickAccept service and is targeting new customers, with annual revenue of less than $500,000, who want to avoid paying fees, reports CNBC.
“We know there are obviously those that are using competitors’ products, we can see them settling into their deposit accounts. Our hope is that through this more integrated experience, they will migrate their business over to QuickAccept through Business Complete Banking,” said Chase business banking unit CEO Jen Roberts.
This story originally appeared on Benzinga.
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