By Ainsley Harris.
A merchant’s primary financial relationship used to be with its bank. But payments companies have now snagged that prized position, thanks to their central role in online transactions and modern point-of-sale solutions. Increasingly, merchants view their payments relationship–more than their bank relationship–as the gateway to financial services including loans, payroll management, and customer rewards.
Enter Wall Street giant JPMorgan Chase, which yesterday announced its acquisition of WePay, a payments startup founded in 2008 and valued at around $220 million in 2015. WePay serves online businesses like marketplaces and crowdfunding sites. Its API solution can handle payment processing, fraud detection, and complex payouts. The two parties did not disclose the terms of the acquisition, but the Wall Street Journal reports that the purchase price topped WePay’s prior valuation, making the deal Chase’s first major fintech buy.
Read more at Fast Company.