JP Morgan Chase-owned WePay reportedly offboards a number of business clients
JP Morgan Chase-owned online payment service provider (PSP) WePay has reportedly offboarded a number of long-standing business clients, according to The Information.
JP Morgan Chase’s WePay reportedly offboards some business customers
The Information reports that the move may suggest the bank is easing off its push to compete with other business payment giants such as Stripe and Square.
The US banking heavyweight bought WePay back in October 2017 in a $400 million deal, with the company set to serve as its payments innovation incubator in Silicon Valley.
In the years since, it has worked to integrate the paytech’s capabilities into its payments suite, including its digital onboarding and progressive onboarding features, with the latter enabling the bank to evaluate the risk of individual payment transactions at scale.
However, The Information reports that although JP Morgan Chase made the acquisition to enhance its chances of competing with the likes of Stripe in the business payments processing space, it has more recently shown a stronger interest in cutting costs at the paytech, adding that some of the business clients it has now offboarded have ended up switching to its biggest competitors.
When approached by FinTech Futures regarding the matter of offboarding businesses, a JP Morgan spokesperson says that “there are a variety of reasons to stop servicing individual merchants – or they may choose to switch – but we would not publicly or otherwise comment”.
“And as with any client situation, if they migrate to a different provider for whatever reason, we support their migration effort in a number of ways,” they add.
The spokesperson also says that the bank is “currently supporting two acquiring platforms in market”, including WePay, with the goal of eventually migrating to a single platform.
“But that hasn’t happened and won’t anytime soon,” the spokesperson adds.
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