Chase Acquires WePay

JPMorgan Chase announced an agreement to acquire integrated payments platform provider WePay for an undisclosed amount. According to Seeking Alpha:

"JPM is executing an apparent strategy to offer more integration points for businesses of all sizes as it seeks to more deeply embed its services into business transactions."

According to Cornerstone's Senior Director Tony DeSanctis: The WePay acquisition is a big opportunity for Chase in three areas:

  1. It allows them to compete directly with Square, Stripe and PayPal in their primary areas of differentiation (simple tools, easy online integration, turnkey solutions).
  2. It provides Chase with talent they do not currently have in house. This could allow them to develop capabilities beyond the current small business capabilities WePay supports today.
  3. It allows Chase to continue to grow its merchant base. The growth in merchants base is not only economically beneficial for their current business but also opens up opportunities for them to further expand their network ambitions with Zelle and Chase Pay. While those are longer term benefits, they could ultimately be the biggest benefit to an acquisition like this."

Ron Shevlin
Director of Research
Cornerstone Advisors