JPMorgan Chase Buys WePay, A Blockchain Payment Startup

Announcements, Blockchain, FinTech, Investing, News | October 23, 2017 By:

 JPMorgan Chase & Co. made a surprise move, acquiring blockchain payment network “WePay.” Terms were not disclosed, but reports indicate it may be as much as $220 million. As noted by Bloomberg, WePay already works with software platforms like GoFundMe and FreshBooks, broadening the payment solution which rival banking players have started to look into.

Prior to the WePay deal, JP Morgan had partnered with other financial start-ups like Bill.com and On Deck Capital Inc. JPMorgan merchant services CEO Matt Kane said that this is the first acquisition of this kind, adding that small businesses are part of their strategic focus.

WePay CEO Bill Clerico has been asked to help turn JPMorgan into a top-tier technology employer in the San Francisco Bay area – the place where Clerico and his team will continue to operate as a JPMorgan as payments innovation incubator.

The JPMorgan and WePay deal also means that the former will make the latter’s payment technology available to its four million small businesses. The added mode of payment broadens the possibilities of settling transactions, not to mention aiding businesses backstopped due to limited payment options.

The move by JPMorgan comes not long after IBM hooked up with Stellar to come up with a blockchain-based payment solution. The new cross-border payments solution is considered a new step to help change the way money is moved around the world. The ploy is expected to establish a big change in the South Pacific region before getting scaled up by IBM and its banking partners.