JPMorgan Challenges Stripe, Square With Free Same-Day WePay Deposits

JPMorgan Chase & Co. 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.

JPMorgan has now taken the latest step in a heated competition for market share with the likes of Stripe, Square Inc SQ and Paypal Holdings Inc PYPL.

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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%. 

Benzinga’s Take

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.

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Photo courtesy of WePay.