JPMorgan Chase & Co. (NYSE: JPM) announced its acquisition of startup financial technology company: WePay. JPMorgan wants to use the fintech company to expand its services with its clients.
WePay is a private company based in Boston, Massachusetts. The company provides an online payment service that offers an integrated and customizable payment solution through its APIs or application programming interface. The solutions can carry out services for crowdfunding, marketplaces, and small business.
“With WePay, Chase is taking the work out of payments for both our business clients and the software providers who serve them,” said Matt Kane, CEO of Chase Merchant Services. "We are powering payments for growth, so businesses can accept payments instantly, get paid faster, and never lose a sale. And we’ll give ISVs a payment facilitator-like experience without the overhead or increased fraud risk.”
The two companies didn’t disclose terms of the deal. But a person familiar with the matter said the price was above the roughly $220 million valuation WePay received in its 2015 funding round, according to Wall Street Journal.
Chase focuses on three assets of the acquisition. The bank wants to provide its clients services to to instant onboarding regardless of the payment method. Chase also wants to speed up the payment transaction between parties. And, the software platforms will be able to easily become payment facilitators.
“Small business across JPMorgan is an enormous strategic focus for us. We know it’s the lifeblood of the economy as well as one of the biggest growth sectors that we have.” said Kane.