JPMorgan launched its free QuickAccept service, which will make it possible for businesses to take card payments within minutes through a mobile app or a contactless card reader. Transactions will be credited to their Chase accounts on the same day.
- Competitors like Square typically take a day or more and charge a 1.5% fee for instant transfers.
- The CEO of JPMorgan’s merchant services arm said the company would settle funds on the same day without any additional fee, which offers them an additional advantage over rivals.
- JPMorgan charges 2.6% plus 10 cents per transaction, or 3.5% plus 10 cents per transaction performed through the mobile app.
- The bank plans to migrate many of its three-million small business customers to the new platform through the Chase Business Complete Banking service.
- Payment platforms offer lending solutions (like ‘buy now, pay later’ options) and digital wallets similar to a checking account, which makes them competitive with banks. PayPal’s market cap stands at ~$250b, behind JPMorgan’s $305b and more than the $210b of Bank of America - the second largest bank in the U.S.