Dive Brief:
- JPMorgan Chase’s payments arm has provided a 100 million euro ($117.4 million) debt facility to Mondu, a Dutch business-to-business payments company, according to a Wednesday press release.
- The company will also join the bank’s partner network, allowing Mondu to provide its deferred payments services for accounts payable and receivable functions to JPMorgan’s clientele, per the release.
- Amsterdam-based Mondu plans to use the funding to grow its B2B payment services and expand across Europe, the joint release said.
Dive Insight:
The companies pointed to a fast-growing online B2B market, with the Europe segment alone expected to reach $1.8 trillion this year, the release said, citing Statista.
With Mondu’s services available to JPMorgan’s network, some 80 corporate clients will have another tool to improve their cash flow, enhance payment processes, offer pay later options and boost sales. Meanwhile, Mondu seeks to capture more of the business-to-business payments market in Europe, the company noted.
Mondu’s “suite of payment solutions and pan-European coverage can help our clients improve working capital management and grow their businesses,” Heather Crowley, global head of trade and working capital product at JPMorgan Payments, said in a statement.
JPMorgan Chase has also supported an American B2B payments startup. In July 2024, JPMorgan Chase and other firms invested in Slope, a San Francisco-based B2B payments company, providing $15 million in equity financing and $50 million in debt financing, totaling $65 million.
As JPMorgan eyes B2B payments in the European and U.S. markets, the bank is also catering to U.S. businesses seeking flexible payment options. In February, JPMorgan Chase partnered with Klarna to offer buy-now-pay-later services. With the service, businesses using JPMorgan Chase’s payments software can access no-interest payment options and other loans.
JPMorgan’s focus on business payments comes as the segment drives growth for the bank. In its third-quarter earnings report, the company cited a 13% year-over-year jump in revenue from its payments arm, which brought in $4.9 billion. The bank’s overall revenue grew 3% to $46.4 billion.
