J.P. Morgan Chase (NYSE:JPM) is reportedly ready to disrupt the fintech disruptors.
The banking behemoth is rolling out same-day deposits to customers of its WePay platform who have bank accounts with the firm, says WePay, the Silicon Valley-based start-up, acquired by J.P. Morgan in December 2017.
The feature, available to some users already and spreading to all of its platforms by year-end, eases a cash bottleneck faced by many businesses.
A restaurant, for instance, can receive credit-card payments for happy hour drinks later that day. Payments received by 5 p.m. Pacific Time on Sunday through Friday will be deposited to user accounts by 9:30 p.m., according to WePay. Payments made on Saturday will be posted by Sunday at 4 p.m.
It is, according to company management, a feature unique to Chase, which is the only major bank with a wholly owned payments business.
That could give it an edge as it faces fintech competitors including Stripe and Square (NYSE:SQ), fast-growing companies that have taken the payments world by storm. These nimble firms have benefited as more commerce goes online, alarming the old guard.
Both companies say payments take one to two business days to complete and both charge fees for faster service. Stripe, for instance, charges 1.5% to make an instant payment, according to its website.
Earlier this month, Stripe said it was launching a lending arm for small businesses. Square has applied for a license that would give it FDIC-backing on accounts.
Shares in JPM climbed $1.85, or 1.6%, to $117.25
