4 min read
Key takeaways
- Embedded banking is a critical component to payment strategy and growing ecosystems
- Embedded banking integration improved customer satisfaction and increased sales for Macy's
- SalonCentric was able to optimize its cash flow, reduce manual processes, and gain real-time visibility into its financial data
J.P. Morgan Payments is now offering an enhanced suite of embedded banking solutions to provide clients with a broader spectrum of banking capabilities to grow their ecosystem. By enhancing payment experiences and offering our native financial solutions, embedded banking has evolved payment strategies.
How does embedded banking deliver enhanced payment experiences?
Marketplaces, platforms, and companies expanding to a marketplace business model want to create a singular experience for their own small-to-medium sized business customers: onboard, accept payments, manage cash flow and make payments all from within their platform.
Embedded banking solutions enables marketplaces and platforms to:
- Expand their product offering to give their customers access to financial products
- Offer various flexible and secure payment options
- Create a secure infrastructure and tools to manage fraud and risk
J.P. Morgan Payments has been at the forefront of this evolution, offering innovative solutions that increase customer convenience, confidence, and loyalty.
Diversifying business models and driving new revenue opportunities
J.P. Morgan Payments’ embedded banking suite of solutions empower clients to diversify their business models, improve seller and customer experiences and drive new revenue opportunities.
Through these solutions, marketplaces and platforms – as well as any company looking to diversify into a marketplace model – can more quickly pay third parties and get paid by customers, increase customer loyalty, and harness the power of data on buying behavior and trends – all boosting the bottom line.
For example, a marketplace can now generate interest income on third-party monies and reduce the cost of payouts, while offering value-added services to improve the user experience and increase utility of its platform.
For a merchant platform, the account experience, which includes digital onboarding, flexible payment options and the ability to monetize balances, enhances seller experiences with access to customized options and financial services.
Client case studies: Macy’s and SalonCentric
Macy's: Transforming Payment Solutions
Macy's, an iconic American department store chain, worked with J.P. Morgan Payments to enhance its payment solutions. By leveraging J.P. Morgan Payments' embedded banking capabilities, Macy's was able to streamline its payment processes, improve efficiency throughout its business, and enhance the overall customer experience.
One of the key highlights was the integration of third-party payment solutions, which allowed Macy's to offer customers a broader range of payment options. The integration improved customer satisfaction and increased sales for Macy's.
SalonCentric: Optimizing Cash Management
SalonCentric, L’Oréal’s B2B marketplace and a leading distributor of professional salon products, faced challenges in efficiently managing its cash flow. J.P. Morgan Payments collaborated with SalonCentric to implement an embedded banking solution, combined with our core treasury offering, that addressed these challenges. By directly integrating J.P. Morgan Payments' cash management tools into its platform, SalonCentric was able to optimize its cash flow, reduce manual processes, and gain real-time visibility into its financial data. This enabled SalonCentric to make more informed business decisions and improve its overall financial performance.
“Our embedded banking services are a key differentiator for us in the market and are another example of how we are leading payments innovation at scale to enable sustainable growth for our clients and their customers. We have the capabilities to embed payments and banking services natively within our commerce clients’ platforms, and couple those with insights and other value-added services. This type of embedded solutions can tailor to a client’s specific need to deliver a fully integrated, reliable and trusted end-to-end experience.”
Lia Cao
Global Head of Embedded Banking & Solutions, J.P. Morgan Payments.
Financial solutions integrated in your marketplace or platform
This year, J.P. Morgan Payments will enhance its embedded banking offerings to retailers that will empower their marketplace business model.
- Introduce streamlined and easy-to-implement Demand Deposit Account (DDA), tailored for embedded payments
- Streamline digital onboarding for merchants, marketplaces and platforms
J.P. Morgan Payments will showcase its embedded banking suite as well as its commerce consumer journey, including biometric enrollment1, and merchant tools at the retail innovation and commerce conference Shoptalk 2024 , held March 17-20, 2024 in Las Vegas.
Accelerate growth with Embedded Banking
J.P. Morgan Payments' embedded banking evolution is redefining how companies manage their financial operations. Enhance your payments ecosystem with a full suite of easy-to-implement financial solutions.
References
Future capabilities of biometrics are under development; features and timelines are subject to change at the Bank’s sole discretion.
