JP Morgan launches QuickAccept smartphone card reader to take on Square
JP Morgan Chase has released its card payment provider, QuickAccept. The launch is part of a new checking account service called Business Complete Banking.
QuickAccept will allow businesses to process card payments swiftly and only be charged a flat pay-as-you-go rate.
Vendors can take card payments through the Chase mobile app or QuickAccept’s contactless card reader.
The service will offer same-day deposits without any fee to those with Chase bank accounts (Square, for example, charges a 1.5% fee for instant transactions).
QuickAccept was developed by the team from WePay, which JP Morgan acquired in 2017.
The move comes as Square and PayPal are increasingly taking on roles once occupied by traditional commercial banks.
PayPal, the digital payment platform, launched a Venmo credit card earlier this month.
Both Square and PayPal have seen record stock surges in 2020 as the COVID-19 pandemic has accelerated the decline of cash payments.
“Our competition either doesn’t have same-day funding, or they charge for it,” says Max Neukirchen, CEO of JP Morgan’s merchant services arm, during a CNBC interview. “We think it’s a great differentiator for businesses because getting money into their account quickly is so important as they manage their cash flow.”
QuickAccept will likely appeal to many businesses looking to cut costs due to the coronavirus pandemic as it is looks to be convenient and cheap to use.
CNN writes that its rivals, Square and PayPal, often process payments more slowly and charge a fee if businesses need the funds from transactions more rapidly.
The device will allow businesses to offer tap, dip or swipe contactless payments with JP Morgan Chase.
The bank charges 2.6% plus 10 cents per tap, dip or swipe transaction. It then charges 3.5% plus 10 cents per transaction that is keyed into the mobile app. The card reader costs $49.95, which is all in line with what Square charges.
The announcement notes that it has ambitious plans to migrate many of its three million-plus users to the service over coming months.