JPMorgan Chase to buy U.S. payments company WePay

JPMorgan Chase to buy U.S. payments company WePay

This article is being republished as part of our daily reproduction of articles that also appeared in the USA print edition of The Wall Street Journal (October 18, 2017).

JPMorgan Chase is to buy Silicon Valley-based WePay to help its small business clients marry software with payments.

"With WePay, Chase is taking the work out of payments for both our business clients and the software providers who serve them", said Matt Kane, CEO of Chase Merchant Services, in a release.

WePay's technology, popular among small businesses, helps online software service providers like FreshBooks and crowdfunding websites such as GoFundMe process payments without impacting the user experience designed by developers. Financial terms of the deal were not disclosed.

WePay, with approximately 200 employees, had previously raised $74 million from venture capitalists, and its investors valued the company at $220 million in a 2015 financing, the Wall Street Journal reported.

The deal marks the first sizable acquisition in J.P. Morgan's recently announced investment plan, in which the banking giant has committed to expanding in the thriving Fintech sector over the next years.

Software-enabled payments are growing at four times the industry average, but embedding payment acceptance still remains a pain point for many software providers.

Even though JPMorgan hasn't made many large acquisitions of fintech companies, it has been an active investor in startups there.

Earlier this year, J.P. Morgan also acquired the technology behind MCX, a mobile-payments network of big merchants such as Wal-Mart Stores Inc. that failed to gain widespread adoption. It invested in another USA payments firm last month.

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