JPMorgan Chase (JPM.US) is expanding its presence in the French payment market, forming an alliance with competitor Visa (VISA.US).

JPMorgan Chase (JPM.US) will join France's Cartes Bancaires CB to strengthen its competitiveness against American competitors Visa (VISA.US) and Mastercard (MA.US). According to a statement on Monday, JPMorgan Chase is the first U.S. bank approved to become a major member of Cartes Bancaires and plans to offer this option to French merchants by the end of the year. The company stated that this move will allow them to offer "competitive transaction costs" to these French customers. This is because, although over 95% of credit cards with Cartes Bancaires can be used through Visa and Mastercard networks, it is usually cheaper for merchants to process transactions through Cartes Bancaires. Ludovic Houri, Co-Head of Payments and Commercial Solutions for JPMorgan Chase in Europe, the Middle East, and Africa, said in an interview, "Joining the Cartes Bancaires network is primarily a demand from our business customers, because it is cheaper than using other card networks," "We want to have a seat at the negotiation table, like a European bank, we want to support the Cartes Bancaires network." The Cartes Bancaires network was established in 1984 and processes over 15 billion transactions annually through cards or mobile phones, accounting for over 65% of regular consumption in France. The main members of this network include BNP Paribas, Crdit Agricole, Socit Gnrale, and HSBC HOLDINGS Limited. France is not the only country with its own domestic payment network. According to the European Card Payment Association, countries such as Belgium, Denmark, Spain, and Norway also operate their own networks. "We are now looking for similar payment networks to join in every European country," Houri said. Banks have been pushing for a larger foothold in payment business in Europe, the Middle East, and Africa, as McKinsey data shows that total revenues in these regions are expected to reach $500 billion by 2027. McKinsey found that around half of the revenue in this region comes from credit cards and domestic transactions. France's Crdit Agricole, which works with Worldline SA, stated in its latest strategic update that it aims to increase total revenue from payment business by 20% by 2025. BNP Paribas achieved its target set for 2025 last year and plans to seek growth in this area. JPMorgan Chase has around 900 employees in France and has expanded its business in the country in the years following the UK's Brexit referendum.