As coronavirus boosts demand for food delivery, Grubhub and JPMorgan have been working together to let drivers instantly cash out. It’s a sign of how JPMorgan is using new payments tech to grow transaction banking.

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Grubhub CEO Matt Maloney (C) applauds after ringing the opening bell before the company's IPO on the floor of the New York Stock Exchange in New York April 4, 2014. Shares of GrubHub Inc, the biggest U.S. online food-delivery service, rose as much as 57 percent in its market debut as investors scrambled for a piece of the fast-growing consumer internet company. REUTERS/Lucas Jackson

Grubhub has been offering a new service in partnership with JPMorgan that allows their drivers to almost instantly cash out their earnings.
The service is similar to that offered by Grubhub competitors like Postmates, Door Dash and Uber Eats, but drivers get unlimited cash outs and, if they have a Chase account, avoid fees.
Before the food delivery companies started offering these types of services, gig-economy workers had to wait until their weekly payday to receive their earnings. Now, many drivers use a combination of the two options to have some spending money today and still receive a paycheck at the end of the week.
The service takes advantage of the real-time payments network that’s been developed over the last couple of years by the banking industry.
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With millions of Americans confined to their homes to wait out the coronavirus pandemic, food delivery services like Grubhub are filling the void in daily restaurant habits.

For the drivers who work for Grubhub, that means a boon in business and an opportunity to make some more money. But it’s not always so easy to quickly get those earnings into bank accounts gig-economy workers can use for real-world expenses.

A recent partnership between Grubhub and JPMorgan Chase now makes it easier for those drivers to cash out their earnings when they need a little money. The service, which goes by the deceptively simple name “Instant Cash Out,” utilizes the real-time payments infrastructure set up several years ago by the banking industry.

While consumers have grown accustomed to real-time peer-to-peer payments services like Venmo and PayPal, payments between companies and from companies to gig workers can take more time. In December, Citi announced a partnership to let its transaction-banking customers deposit money nearly instantly into digital wallets of PayPal’s nearly 300 million users, though customers would still need to move that money into bank accounts.

A wave of earned-wage advance startups has also sprung up offering earlier access to earnings — with various fees, limits, and eligibility— though those companies are aimed at payrolled workers based on hours worked. DailyPay has also launched a savings product.

Chicago-based Grubhub worked with the nation’s largest bank to come up with a way to give its thousands of gig-economy drivers access to their money the same day they earn it. A pilot was started in October, with a full rollout taking place later in 2019. The two companies now process hundreds of thousands of monthly transactions.

For JPMorgan, the rollout takes advantage of its position in the real-time payments network, a relatively new tech infrastructure set up by the banking system. JPMorgan was a leader in its development.

“We lead the real-time payments space and it’s a prime example of one of the innovations that we believe will bring a huge benefit to our clients and to our clients’ clients,” Lia Chow, global head of wholesale payment solutions at JPMorgan, said in an interview.

JPMorgan processed 5.2 million transactions on the …read more

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