JPMorgan to launch a new fintech feature to take on PayPal

Written by

Written on Sep 14, 2023

Reading time 2 minutes

JPMorgan reportedly plans on introducing digital payroll processing.
It has already partnered with Gusto to launch that service.
JPM is currently down about 6.0% versus its year-to-date high.

JPMorgan Chase & Co (NYSE: JPM) is reportedly planning on introducing digital payroll processing – a move the financial services behemoth hopes will make it more appealing to small business.

JPMorgan has partnered with Gusto

The investment bank will use technology from Gusto – a San Francisco-headquartered fintech to power that feature. Its CEO Josh Reeves told CNBC today:

If you are a customer of Chase payments solutions, you can go to payroll from the same exact place you do banking.

JPM also recently partnered with TIFIN to explore the potential of artificial intelligence in financial services as Invezz reported here.

The bank is expected to report its financial results for the third quarter in October. Consensus is for it to earn $3.76 a share versus $3.12 per share a year ago.

Why does JPM want to launch payroll services?

JPMorgan wants to take on the likes of PayPal Holdings Inc (NASDAQ: PYPL) and Square with the launch of digital payroll processing – both of which have their own services on that front.

It’s worth mentioning here, though, that the financial services giant expects to take until the end of next year to integrate that feature. Josh Reeves – the Chief Executive of Gusto also said today:

It’s the same experience, with the same login and credentialing; all that stuff becomes easier when it’s in a one stop shop-type environment.

JPMorgan has invested billions in technology to introduce features like credit card reader and early direct deposit in recent years. Wall Street currently rates its stock at “overweight”.