JPMorgan Chase wins U.S. contract to validate Treasury payments

JPMorgan Chase & Co.
JPM,
+0.62%
said Wednesday it won a competitive process to provide account validation services for the U.S. Treasury Department under a financial agency agreement for a minimum of five years. Terms of the deal were not disclosed in a statement by the bank. The U.S. Treasury disbursed about $5.3 trillion in payments in 2022 through nearly 1.4 billion payments including Social Security, Medicare payments, unemployment insurance, and tax refunds. Last year an estimated $247 billion in improper payments were logged by the government including overpayments, underpayments and payments that should not have been made. The contract includes verifying payment information for the federal government before payments are issued. JPMorgan Chase stock was up by 0.3% in premarket trades on Wednesday.