JPMorgan Chase & Co. (NYSE: JPM) as well as Temasek Holdings decided to invest $100 million in Bill.com. Bill.com is a company that helps businesses digitize their payments and the two investing companies will use this firm to expand their distribution with included participation from other investors as well.
Business to business payments in the U.S. have been slow to adapting to new digital technologies so by using Bill.com’s technology, it can be integrated into the websites of banks and accounting software providers to make it easier to send and receive digital payments. Over 100,000 Bill.com customers represent more than 1% of U.S. businesses and the company currently processes $50 billion in payments a year. The firm suggests that businesses should have access to the same digital payments experience as people who now use popular applications such as Venmo.
This investment is starting a trend with large financial institutions in partnering with smaller financial firms. Over the past few years, venture capital arms were already set up to make better investments in startup companies that include payments processing. Fintech companies are looking more into these strategies.