After explosive growth at Square, Chase launches own version

JPMorgan Chase has launched an electronic payment system today. PHOTO CREDIT: Frank Franklin II

NEW YORK — After watching the explosive growth at electronic payment start-ups like Jack Dorsey’s Square, JPMorgan Chase has launched its own version to lure small business owners increasingly relying on technology during the pandemic.

The bank’s new QuickAccept checking account will allow businesses to process card payments almost instantly and have the funds available the same day.

QuickAccept is only available to businesses with Chase accounts and same-day funding is free if the money goes into a Chase Business account, the bank said today.

Square charges 1.5% plus processing fees for same day funding, according to its website.

Chase for Business, a division of JPMorgan Chase, said the new tool can be activated immediately for U.S. sales through the Chase Mobile app or contactless mobile card reader, which costs $49.95. There is a monthly service fee of $15 for the card reader, which can be waived by reaching minimum account balances or meeting other requirements.

Chase’s pricing is almost identical to Square’s and others — 2.6% plus 10 cents for tap, dip, swipe transactions and 3.5% plus 10 cents for manual transactions through the mobile app.

Mobile payment platforms from Square and others had already become ubiquitous at small businesses, from restaurants to farmer’s markets. The pandemic has accelerated that trend, with so many small businesses making transactions through a window or other barriers.

Quarterly sales growth at Square Inc. jumped from an already blockbuster 40% or more to more than 64% in its most recent quarter which ended in June.

Square was founded in 2009 by Dorsey, who is also the founder and CEO of Twitter.