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

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Persons: JPMorgan Chase, Josh Reeves, Reeves Organizations: JPMorgan, CNBC, PayPal Locations: Francisco