According to CNBC, JP Morgan Chase Bank is stepping up its fintech processes by optimizing its fintech platform, WePay. Customers of JP Morgan Chase Bank can tap into same-day deposits by using WePay. Best of all, businesses will not have to pay extra to expedite their deposits.
The announcement is an important one as a critical value provided up and coming fintech players like Stripe and Square is faster and more convenient payments.
At the current moment, both Stripe and Square might take from one to two days to finalize payments and additional costs for expedited services.
JP Morgan Chase Bank has a vested interested in the financial sector and wouldn’t want to be disrupted by newer entrants such as Stripe and Square, both of which are increasingly providing banking services from loans to sending and receiving payments.
The banking institution seeks to become the disrupter.
WePay Adds Value to JP Morgan
The recent WePay acquisition seems to be paying off for JP Morgan as it has helped the bank stay in touch with the growing fintech industry while remaining competitive. The new initiative means that businesses can transact instantly without incurring extra fees.
This flow of cash and seamless transactions improves the lives of business owners as they take in payments and make payments regularly. Businesses won’t be constrained by cash processing hold-ups and can benefit from a simple cash intake payment process.
JP Morgan isn’t just muscling out its potential fintech threats but existing competition by being the only one to implement and roll this feature out to a small base of customers in 2019. The corporation is expected to roll out the feature for all by the end of 2019.
Further consolidation is set to take place within this financial services sector, and as up and coming players might need support from existing institutions to survive and continue to operate effectively.
WePay has grown its business and is used by more than 900 companies across different industries. WePay operates in Canada and the United Kingdom.
The fintech space will continue to become even more competitive and new entrants will have to figure out how to compete by improving their services and capturing value for their shareholders.
Cryptocurrencies in the Age of Improved Payment Processing
If the traditional banking infrastructure can corner the component of speed, then the value in cryptocurrency will have to shift to open access and censorship resistance solely. Primarily, cryptocurrencies must provide something that the current banking system can not. Non-correlated assets to the financial industry are one feature; decentralized finance might be another, privacy will also be another vital factor.
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