US-based Investment bank JPMorgan Chase & Co has launched a new real-time payments service on Wednesday. It hopes it will increase its edge in the financial industry’s battle to handle more of the surging volumes of global digital payments.
The new payment product, called a request for pay, lets corporate clients send payment requests to the bank’s 57 million retail clients using its app or website, said Cyrus Bhathawalla, global head of real-time payments, JPMorgan Chase.
The digital and real-time payment product is one of a handful JPMorgan has in the works. The largest US bank invests heavily in the sector that has grown sharply as more transactions occur online, further boosted during the pandemic.
Last month, the bank’s real-time payments service went live and began a pilot phase last week with its first corporate client, a fintech company. However, the name of the company is not disclosed.
Bhathawalla said, “Our job is to give several different payment methods so corporates and merchants can provide the right options to their customers.”
JPMorgan envisions clients like a gas-distributing company using the service to get paid faster for filling up a gas station’s supply tanks, Bhathawalla further added.
Currently, the same kind of company has to wait a week to get its payments. So, digital and real-time payments could help it to receive payments in less than 30 seconds.
JPMorgan is one of the first banks which participated in the Clearing House real-time payments network in 2017. The bank processes about 12 million transactions in a month. In addition, the business is part of the wholesale payments division, which accounts for roughly 10 percent of JPMorgan’s revenue.
Recently, JPMorgan Chase expanded its pay increase to a broader range of staff to raise its stake in intensifying the battle for talent in the banking sector.