JPMorgan Chase to offer digital payroll processing

Friday 15 September 2023 11:48 CET | News

JPMorgan has announced it is introducing digital payroll processing, aiming to cater more to small business customers.


The bank has chosen a US-based fintech company, Gusto, to supply the underlying technology for this offering. This is expected to enable JPMorgan’s customers to access payroll processing from the same platform they use for banking, with a streamlined experience and unified login credentials.

JPMorgan has previously introduced fintech features such as a Square-like credit card reader for small businesses, however, the bank has decided to partner with Gusto for payroll services rather than develop its own solution. Payroll service can be complex as it varies between states or cities, making it a challenging sector to navigate and implement.

A fintech partner like Gusto is better able to manage the complexity of offering payroll services nationally. Partnering with Gusto will help the bank accelerate the launch of this service, as it is set to go live by the end of 2024. The service will handle salary disbursements, generate tax documents and pay stubs, and file to local and national agencies.

According to a statement from the bank, it has been making substantial investments in technology in recent years. This is partly due to the competition for the loyalty of retail and business customers in the US, with the increasing competition posed by fintech companies like PayPal and Square, which offer comprehensive financial solutions. 

JPMorgan has announced it is introducing digital payroll processing, aiming to cater more to small business customers.


More about JPMorgan and its recent developments 

Based in the US, JPMorgan serves over 5 million small business customers and has more than 200,000 users of its payment solutions offering.

In September 2023, Canada-based bank, Scotiabank, extended its partnership with financial services provider Chase, a JPMorgan subsidiary, to offer advanced banking and merchant services solutions. According to the press release information, the extension of the long-standing agreement was to provide efficient merchant service solutions to Canadian small business owners, and commercial and corporate clients. Through this collaboration, Scotiabank and Chase are set to provide merchant clients with access to a secure payment platform that processes more than USD 2 trillion in annual global processing volumes.

Also in September 2023, JPMorgan announced its plans to expand its blockchain initiatives by introducing a blockchain-based digital deposit token. The bank was reportedly in the early phases of exploring a blockchain-based digital deposit token aimed at expediting cross-border payments and settlements. JPMorgan had laid the groundwork for the necessary infrastructure for this payment method. However, the creation of the token was hinging on obtaining approval from regulatory authorities in the US.

More about Gusto

Based in the US, Gusto serves around 300,000 small and medium-sized businesses and was most recently valued at USD 9.6 billion. The company competes with both traditional and newer providers in the payroll services industry, including ADP, Intuit, Paychex, and Rippling.   

More: Link

Free Headlines in your E-mail

Every day we send out a free e-mail with the most important headlines of the last 24 hours.

Subscribe now

Keywords: partnership, banking, fintech, SMEs, paytech, payment processing
Categories: Banking & Fintech
Companies: JPMorgan Chase
Countries: United States
This article is part of category

Banking & Fintech

JPMorgan Chase

Discover all the Company news on JPMorgan Chase and other articles related to JPMorgan Chase in The Paypers News, Reports, and insights on the payments and fintech industry: