Square and PayPal are disrupting the commercial banking industry. Now, the United States’ largest bank is fighting back.
On Wednesday, JPMorgan Chase (JPM) released a card payment provider, QuickAccept, as part of a new checking account service called Business Complete Banking. With the new service, the bank is hoping to attract small-business owners, a spokesperson said.
Vendors can take card payments through the Chase mobile app or QuickAccept’s contactless card reader, and the service will offer same-day deposits without any fee to those with Chase bank accounts (Square, for example, charges a 1.5% fee for instant transactions).
QuickAccept was developed by the team from WePay, which JPMorgan acquired in 2017.
The move comes as Square (SQ) and PayPal (PYPL) are increasingly taking on roles once occupied by traditional commercial banks. PayPal (PYPL), the digital payment platform, launched a Venmo credit card earlier this month. Both Square (SQ) and PayPal (PYPL) have seen record stock surges in 2020 as the Covid-19 pandemic has accelerated the decline of cash payments.