JPMorgan Challenges Stripe, Square With Free Same-Day WePay Deposits
JPMorgan Chase & Co. (NYSE: JPM) is stepping up its digital payments game by offering free same-day deposits for its WePay customers.
On Tuesday, WePay CEO Bill Clerico said by the end of 2019, all WePay customers will be able to make free same-day deposits.
While other payment processors offer same-day services for a fee, Clerico said JPMorgan subsidiary WePay is the only processor offering same-day deposits free of charge.
Why It’s Important
The global payments industry is a $1.9-trillion business, according to McKinsey.
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Credit card payments take between 24 hours and 72 hours to deposit into Stripe and Square users' accounts. Stripe users must pay a 1.5% fee for instant deposits. Square shares fell Tuesday morning following the news.
The announcement of free same-day WePay transfers comes less than a week after Stripe announced it is taking a step into JPMorgan’s territory by offering online lending services for small businesses.
JPMorgan acquired WePay back in 2017 and is the only major U.S. bank with a wholly owned payment subsidiary.
JPMorgan shares were higher by 0.62% at the time of publication Tuesday, while Square shares were down 0.5% and PayPal shares were down 2.11%.
When businesses compete for market share, customers win — and the payments space is no exception. PayPal and Square investors should expect rising competition from both fintech startups like Stripe and big banks like JPMorgan and others.
Photo courtesy of WePay.
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