- The American institution JP Morgan Chase adds same-day deposits, a free service enabling merchants to have faster access to their payments.
- Goal: meet merchants’ and businesses’ needs when it comes to cash management.
- Typically, payments can require 48 to 72 hours (over weekends) to process. But JP Morgan Chase will no longer have to wait before receiving funds.
- JP Morgan Chase relies on their WePay platform, mostly meant for SMEs to feature a same-day deposit service.
- Example: a credit card-based payment made before 5 PM will be deposited to the user account by 9:30 PM. And payments made on Saturday will be posted by Sunday at 4 AM.
- This new feature has already been made available to some customers and will be addressing all users of the WePay platform by the end of the year.
- Matching market realities. The payment landscape is being reshaped. Innovative offers by FinTechs and long-standing industry players are causing customer expectations to evolve. JP Morgan Chase makes adjustments to try and apply real-time standards and they grow more popular. They choose to tackle this issue with a service likely to secure merchants’ loyalty.
- Competitive edge. This service isn’t charged and provides the group with a significant competitive edge especially as they face competition from payments-focused FinTechs, such as Stripe and Square. These two companies charge extra fees for processing payments faster. Stripe, for instance, charges 1.5% per instant payment.
- In 2017, Chase acquired the Californian FinTech WePay –behind a payment solution for crowdfunding platforms– for $220 million.
- This investment allowed them to further boost an already well established, credit card processing business.
- Chase isn’t the first institution betting on instant services. A month ago, Mastercard acquired a majority stake in Corporate Services business unit from the Danish e-payment specialist Nets.