In a move that could wreck the market equations in the payment processing market, banking giant JPMorgan Chase (NYSE: JPM) on Tuesday launched same-day deposits for its account holders, who are also on WePay. The announcement was reportedly made by Bill Clerico, CEO of WePay, a platform JPMorgan acquired in 2017.
According to CNBC, the CEO said in a telephone interview that the feature was already made available to some of its customers, and would be expanded to all its platforms by the end of the year.
The announcement comes as a shocker to fintech firms Square (NYSE: SQ) and Stripe, both of which have been benefiting from the growth in online payments. Shares of Square fell 1.5% during pre-market trading on Tuesday. Stripe is a privately-owned firm.
Meanwhile, shares of JPMorgan were up 2.5%.
Payment firms such as Square and Stripe take 24 to 72 hours for credit card payments to deposit in the business’ bank account. Though they offer faster service options as well, a fee is often charged for the same.
WePay and JPMorgan offer same-day deposits at no extra costs, and the feature is available even during weekends, according to the report on CNBC.