The news: JPMorgan launched request for pay, a service that lets corporate clients avoid card network payment processing and other third-party services by sending payment requests directly to the roughly 57 million retail customers who use the bank’s app or website, per Reuters.
Why it’s worth watching: Demand for faster payments became more pronounced during the pandemic—businesses and consumers needed to access their funds faster, and paper checks, cash, and other traditional payments weren’t cutting it.
That put a greater emphasis on faster payments and real-time payment (RTP) systems, leading to innovations that improved the end-to-end transaction process: In March 2021, Automated Clearing House (ACH) expanded same-day settlement so financial institutions (FIs) could send payments later in the business day. And the following month, five banks and three credit unions began testing the Federal Reserve’s FedNow RTP system, which will launch in the next few years.
JPMorgan was quick to get involved in faster payments: It was one of the first major US banks to connect to The Clearing House’s (TCH) RTP network in 2017. The new service reflects the bank’s desire to build a stronger presence in the space.
The opportunities: Request for pay is JPMorgan’s first proprietary RTP solution—here’s how the service can benefit the bank.
Go deeper: We’ve barely begun to explore faster payments and RTP—to get a thorough breakdown of use cases, opportunities, and the future of the segment, check out our report, The Rise of Real-Time Payments.