JPMorgan has agreed to buy payments start-up WePay, in its first major acquisition of a financial technology (fintech) firm.
The investment bank said Tuesday the idea might provide its 4 million little businesses clients with WePay’s payments technology.
“With WePay, Chase is usually taking the work out of payments for both our business clients as well as also also the software providers who serve them,” Matt Kane, CEO of Chase Merchant Services, said in a statement Tuesday.
“We are powering payments for growth, so businesses can accept payments instantly, get paid faster, as well as also also never lose a sale.”
WePay is usually a Silicon Valley company which offers payment capabilities to business platforms. The firm’s technology uses application programming interfaces (APIs) to integrate payments functionality with software. APIs are codes which allow different software components to communicate with each different.
JPMorgan did not disclose the value of the acquisition, nevertheless the Wall Street Journal reported the cost being above the $220 million valuation WePay reached in a 2015 funding round.
WePay’s software is usually currently used by crowdfunding website GoFundMe, cloud-based accounting firm FreshBooks as well as also also online marketer Constant Contact.
“Being part of the Chase family — with its global capabilities, brand as well as also also scale — will help us better support our growing list of platform partners as well as also also the businesses they serve,” Bill Clerico, founder as well as also also CEO of WePay, said.
“We’re excited to marry the distribution of one of the entire world’s largest as well as also also most respected financial institutions with the best technology as well as also also talent in Silicon Valley.”
Financial institutions have expressed growing interest in fintech acquisitions.
In August, credit card processing company Vantiv bought payments processor Worldpay for $10.4 billion.
as well as also also last week a Bernstein analyst predicted which PayPal might likely invest billions in a payments company in “coming months” — with Square, Stripe, as well as also also Adyen on its radar.