JPMorgan Chase is preparing to move into the POS financing market, enabling customers to pay in installments for $500-plus purchases and run up loans on bigger ticket items.
The new financing option, dubbed 'My Chase Plan' was unveiled by JPMorgan card chief Jennifer Piepszak during the company’s investor day in New York on Tuesday.
The tool allows card customers to select from past purchases of more than $500 and choose to finance them over a longer period with monthly fees, rather than an interest-based repayment.
The bank is also upping its game in the consumer lending space via 'My Chase Loan', which will enable card customers to borrow against credit lines to fund larger value items. Customers will be able to apply for the loan through the bank's mobile app and have the funds immediately transferred to their checking accounts.
JPMorgan's move comes as fresh data indicates that non-bank lenders are widening their market share lead over banks. The figures from TransUnion show that the fintech share of personal loan balances rose to 38% in 2018, up from 35% in 2017, while bank share declined from 30% in 2017 to 28% last year.
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