JP Morgan joins banks with real-time payments, challenging ventures like PayPal

A view of the exterior of the JP Morgan Chase & Co. Corporate headquarters in the Manhattan borough of New York City, May 20, 2015. REUTERS/Mike Segar

JPMorgan Chase & Co. has joined U.S. rivals including Bank of America Corp. and U.S. Bancorp in letting customers transfer money between the lenders in real time, challenging ventures including PayPal Holdings Inc.’s Venmo.

JPMorgan, whose Chase QuickPay product handled $20 billion in peer-to-peer transfers last year, began offering the service Sunday after customers requested it, said Barry Sommers, chief executive officer of the firm’s consumer bank. U.S. Bank and Charlotte, North Carolina-based Bank of America have been offering the same service since March, the companies said.

More lenders will likely join soon, said Mary Harman, managing director of payments at Bank of America. She also is chairman the management committee of Early Warning System, the bank-owned group that runs clearXchange, a digital network that enables the real-time payments.

“We’re poised to move pretty quickly,” Harman said in a telephone interview. “You’re going to see the next wave of banks coming online here en masse, in the next 30 to 60 days.”

‘Awkwardness of Cash’

Banks understand they need to become more user-friendly to compete with fintech companies like PayPal, which owns money-transfer app Venmo, said Wayne Johnson, a Raymond James Financial Inc. analyst based in Atlanta.

“The banks realize in general that everything is moving toward mobile, away from traditional branches, and they’re trying to offer as many” services as possible, Johnson said.

PayPal shares dropped 0.6 percent to $36.54, near its lows for the day. The company’s three digital wallets — PayPal, Venmo and Xoom — handled $41 billion of peer-to-peer transfers last year, it said in a statement.

“We welcome any developments that help people move away from the awkwardness of cash,” PayPal said Monday. “We are a major partner to the banks to make that happen.”

By Jenny Surane

Bloomberg

 

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.