JPMorgan Chase Just Announced a New Payment Platform: Should Square and PayPal Investors Be Worried?
JPMorgan Chase (NYSE: JPM) is rolling out a new card reader that pairs with a merchant's smartphone, as well as a new small-business checking account and a payment platform called QuickAccept. Users can expect their sales to show up in their Chase business accounts on the same day, with no additional cost for the fast processing time.
The new platform will have processing fees that are on par with what competitors like Square (NYSE: SQ) and PayPal (NASDAQ: PYPL) charge, with a 2.6% plus $0.10 fee for tap, dip, or swipe transactions with the card reader, or 3.5% plus $0.10 for card-not-present transactions keyed into the mobile app.
JPMorgan Chase plans to pair the new card reader with a new type of business account, called Chase Business Complete Banking, which has no monthly fee if certain balance or volume thresholds are met, including $2,000 in monthly QuickAccept payment volume. With millions of small businesses already banking with Chase and a more favorable cost structure for immediate payments, should Square and PayPal investors be worried?
Source Fool.com
