JP Morgan Chase & Co. (NYSE:JPM) said its Pay-by-bank solution, which leverages Mastercard Incorporated's (NYSE:MA) open banking technology, is now available in the U.S. for billers for a variety of recurring payments, including rent, utilities, healthcare and more.

Verizon Communications Inc. (NYSE: VZ) plans to pilot the program in the coming months.

Pay-by-bank is a payment option that gives merchants the ability to allow their customers to conveniently pay directly from their bank account using traditional ACH banking rails.

The launch follows a successful first development stage of J.P. Morgan Payments and Mastercard's Pay-by-bank partnership, which began in November 2022.

"Our partnership with Mastercard will allow for easy and secure payments directly from bank accounts," said Max Neukirchen, Head of Payments & Commerce Solutions at JPM.

"We are excited for the future as we have a robust pipeline of biller clients across the U.S. interested to use our Pay-by-bank offering seeking to digitize their processes and increase payments efficiency."

Price Action: JPM shares are trading lower by 1.28% to $143.43 on the last check Friday.