JPMorgan Chase & Co. (NYSE:JPM) is planning to buy out payment processing service startup WePay as part of its plan to deliver the technology to its 4 million small enterprise customers.
The acquisition will allow JPMorgan Chase to smoothen out payment processes between merchants and service providers through the seamless integration of payments into software. WePay provides payment processing services to crowdfunding websites and online marketplaces. The two parties have not disclosed the value of the acquisition. The fintech startup was valued at roughly $220 million in 2015 and an anonymous source disclosed to the Wall Street Journal that the value of the deal was higher than the last valued figure of the startup.
“With WePay, Chase is taking the work out of payments for both our business clients and the software providers who serve them,” stated Matt Kane, the chief executive in charge of Chase Merchant Services.
The recently announced acquisition highlights the ongoing trend of financial institutions making acquisitions that allow them to embed payments into their software. Roughly 166 fintech acquisitions have taken place just this year. JPMorgan previously announced a partnership with Bill.com, a startup based in Palo Alto. The investment bank revealed that it would integrate automated payment technology from the startup into its digital platform.
The bank also led a round of funding worth $100 million for Bil.com this month and it also expanded its digital lending partnership with OnDeck, a New York-based startup as part of their plan to make it easier for small businesses to access capital.
Meanwhile, JPMorgan’s acquisition of WePay is currently awaiting regulatory approval as well as customary closing conditions. WePay will become JPMorgan’s payment solutions incubator once the acquisition deal is complete. The fintech startup’s employees are expected to continue operating as part of the investment bank. The acquisition is also believed to be part of the bank’s plan to come up with innovations that will improve service to customers while also allowing it to adapt to the changes taking place in the industry.
JPMorgan Chase stock closed the latest trading session on Wednesday at $97.99 after a 0.38 percent gain compared to the value of the stock during the previous close.