JPMorgan Chase to offer online payroll services as it steps up fight with Square, PayPal
JPMorgan Chase is stepping up its appeal to small business customers by planning to offer digital payroll processing, CNBC has learned.

The bank has picked San Francisco-based fintech player Gusto to provide the underlying technology for the feature, according to Gusto CEO Josh Reeves.

"If you're a customer of Chase payments solutions, you can go to payroll from the same exact place you do banking," Reeves said. "It's the same experience, with the same login and credentialing; all that stuff becomes easier when it's in a one stop shop-type environment."

JPMorgan, the biggest U.S. bank by assets, has poured billions of dollars into technology in recent years. It's part of a larger battle for the loyalty of American retail and business customers as fintech players including PayPal and Square morph into do-everything providers that threaten traditional banks. Square offers payroll services, while PayPal's venture arm has taken stakes in payroll service providers.

JPMorgan has previously rolled out fintech features, including a Square-like credit card reader for small businesses and early direct deposit for consumers.