Software-enabled payment systems are now garnering massive demand with the advent of new trends, such as every e-commerce platform having its own kind of currency or its own platform for making payments.
Keeping up with the trend, JPMorgan Chase made an announcement on Tuesday that the bank will be acquiring WePay. WePay is a nine-year-old Silicon Valley firm that delivers payments-as-a-service application programming interfaces. Through this deal, the bank aims to integrate payments into software used by small businesses.
This acquisition will give Chase’s business customers access to a simple platform for embedding payment acceptance into their digital experiences. After the acquisition, WePay and its employees will operate as Chase’s payments innovation incubator in Silicon Valley.
WePay’s technology, which is popular among small businesses, helps online software service providers like FreshBooks and crowdfunding websites such as GoFundMe process payments without impacting the user experience designed by developers.
“With WePay, Chase is taking the work out of payments for both our business clients and the software providers who serve them,” Matt Kane, CEO of Chase merchant services, said in a statement. “We are powering payments for growth so businesses can accept payments instantly, get paid faster and never lose a sale. And we’ll give [independent software vendors] a payment facilitator-like experience without the overhead or increased fraud risk.” Multiple large software platforms already use WePay’s APIs for integrating payments.
The acquisition follows other efforts from Chase to facilitate digital financial services for small businesses. Last month the company announced a collaboration with Bill.com. Also, earlier this year, Chase extended its digital lending collaboration with OnDeck.
Financial terms of the deal have not yet been disclosed. The Wall Street Journal reported that the price was above the $220 million valuation that WePay received in it’s last fundraising round in 2015.