J.P. Morgan Chase wants in on small- and mid-sized (SMB) payments and is banking on no-fee QuickAccept to edge out FinTech rivals Square and PayPal, according to a Wednesday (Oct. 21) CNBC report.
Using QuickAccept, SMBs can take payments through a mobile app or contactless card reader and get the funds instantly, with no fee. Square, for example, charges a 1.5% fee for instant transfers.
The banking giant’s FinTech solution will be introduced with an associated business checking account.
Max Neukirchen, chief executive officer (CEO), merchant services, J.P. Morgan, told CNBC that QuickAccept because rivals charge fees for instant transfers or simply don’t offer the service, “it’s a great differentiator.” He added that instant funds can help SMBs better manage cash flow
Before Square, launched by Twitter co-founder Jack Dorsey in 2009, SMBs had a hard time maneuvering point-of-sale (POS) card transactions. Square now manages $100 billion in annual payments and has an $83 billion market capitalization, the article said.
“They came out with this whole dongle to process stuff and it was a great idea,” said J.P. Morgan CEO Jamie Dimon, who mentioned Square during a February 2019 investor conference, per CNBC. “They did all stuff we could have done that we didn’t do.”
Other QuickAccept competitors include PayPal and Fiserv, which bought the FinTech FirstData, which had previously merged with Clover.
J.P. Morgan, the largest U.S. bank by assets, created QuickAccept with the assistance of the bank’s 2017 team from its WePay acquisition, Neukirchen said.
Jen Roberts, CEO of the Chase business banking unit, told CNBC that a big percentage of its three million-plus SMB customers will be moved to QuickAccept. She said the service targets SMBs with annual revenues of less than a half-million dollars “who want to avoid paying fees,” she said.
The J.P. Morgan all-in-one solution for SMBs will be called Chase Business Complete Banking, and will streamline services so people can avoid “cobbling together” different solutions from banks and FinTechs, she said.
J.P. Morgan first started consolidating corporate payments last year by combining SMB and large enterprise solutions.
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