Californians might be interested in learning that JPMorgan Chase & Co. has agreed to purchase WePay, a financial technology startup. The bank decided to acquire WePay in order to help small businesses with the faster collection of payments.

JPMorgan business customers will be able to use WePay with the bank’s software. The bank has 4 million small business customers for whom the acquisition is targeted. WePay was founded in 2008 and currently works with FreshBooks and GoFundMe. JP Morgan has formed other partnerships with financial technology firms, including On Deck Capital Inc. and Bill.com.

The bank decided to acquire WePay instead of partnering with it because both companies felt that the payments business would be better if it was owned by the bank. JPMorgan’s acquisition of WePay is the first acquisition of a fintech company by the bank. The CEO and founder of WePay said that he will work on JPMorgan’s behalf to turn the bank into one of the top technology employers in the San Francisco Bay Area.

Business formation and planning are important considerations when businesses are starting as well as after they are established. Choosing the right structure can help businesses to save money on their taxes while also protecting them from liability. Planning should be conducted regularly. In some cases such as this acquisition, it may make sense for businesses to be acquired by others so that the newly combined business can grow even faster. Experienced business and commercial law attorneys may assist entrepreneurs and established businesses to help ensure that they will be protected. They may also help with major business transactions, including acquisitions and mergers. Having access to legal advice may help businesses to avoid making costly mistakes.

Source: Bloomberg, “JPMorgan to buy payment firm WePay in rare fintech acquisition,” Jennifer Surane, Oct. 17, 2017.