In today's buying environment, I think customers have a
certain style that they want to express about themselves. And our job as Macy's
is to bring them the pieces and parts of their wardrobe or their potential
wardrobe to help them own that style.



Macy's was looking at the demands of the customer and really
saying, how do we meet them, in a variety of different ways.




Macy's is a 160 year old company, and to be able to come in
and build upon that heritage with a new digital e-commerce model is a really
exciting opportunity.


As the retail industry changes, Macy’s is changing with it. The
company turned to J.P. Morgan to enhance its digital Marketplace, which makes
it easier for shoppers to find new products and Brands.


We can respond to market trends in a different way and we
didn't have to have the investment in the inventory to do so.


Being a curated marketplace, our strategy is first and
foremost rooted in a close partnership with our merchants. …and J.P. Morgan was
there to help us with that.



I've always wanted to be an entrepreneur. I come from a
family of entrepreneurs and so for me it was always just about, you know,
what's the big idea?


We make beautiful clothing for vibrant women with
sophisticated style.


Being on Macy's Marketplace has enabled us to share our product and our brand with a whole new audience.


It's a really special feeling to be a small bootstrap female owned business...and have the support of a company as iconic as Macy's. It gives me a vote of confidence.


A seller on a marketplace platform is looking for a seamless, easy and fast way to get paid. We're not waiting for cash to come into our business to be able to execute a new marketing strategy or to order more inventory.


So, it really allows us to develop and grow our business at a speed that we wouldn't be able to otherwise.


Macy’s needed an integrated payout solution capable of handling the relationship between an enterprise business and smaller third party sellers.


With J.P. Morgan Concourse, Macy’s can send secure payments while keeping seller information private.


The marketplace money transmitter laws are very complex. And there's state by state nuances that you have to pay attention to.


Bringing in an expert like J.P. Morgan to manage those was absolutely the right decision for us. We grew our business by 50% on the marketplace from Q4 to Q1, which is really something exciting and that not a lot of people get to do in the retail environment.


Since launching, Macy’s and J.P. Morgan have helped over 900 brands like Alala, reach new customers and receive secure, and seamless payments.


On the heels of this success, Macy’s has set the tone for its next chapter—and maybe even its next century—in the retail space.


Being part of Macy's marketplace, we have access to so many more women than we could on our own.


And so to really get that exposure through Macy’s is really priceless.


That is what really keeps me going. It's that joy that we can bring into these women's lives through such a small thing as a new piece of clothing. I think in the future it's gonna be about how do we customize that website experience for every single customer that comes to our site.


J.P. Morgan has been a really great partner from the beginning to think through the best way that we can show up for our sellers.


macy's marketplace


Key takeways

  • In a world in which customers increasingly demand personalization, Macy’s identified that a curated marketplace would allow it to offer more selection while supporting diverse businesses. However, the marketplace model introduced complexities around management of funds.
  • J.P. Morgan solutions allowed Macy’s to manage these funds in addition to supporting sellers with seamless and secure payments.
  • Macy’s nearly doubled its marketplace sellers in the first quarter of 2023 while experiencing a 50% increase in revenue between Q4 2022 and Q1 2023.


Macy’s is a legacy department store founded more than 160 years ago that operates more than 450 stores. The company has established itself as a staple within American retail, and in recent years, expanded its online footprint with more than one million Facebook followers and international shipping. In 2021, the company launched Mission Every One, its social-purpose program that aims to direct $5 billion in spending through 2025 toward a more equitable and sustainable future.

The challenge

As consumers increasingly demand personalization in their style and shopping choices, Macy’s sought to expand its offerings by including new product categories such as electronics. It also wanted to support its Mission Every One program, which aims to increase diverse-owned brand representation. The company hoped to achieve all of this without increasing its inventory and associated costs.

Like other businesses, Macy’s identified that a marketplace could meet evolving customer needs by supporting other sellers on its platform. These sellers are in large part small businesses that often lack resources to develop an online footprint and spend on customer acquisition. As diverse owners often operate small businesses, the marketplace could increase product offerings while supporting the unique needs of these diverse owners. Since marketplace sellers maintain ownership of their inventories, Macy’s also benefited from incurring no additional inventory costs.

Macy’s also wanted to offer features that would support its sellers as much as their customers, but this introduced complexities. Each time a customer purchases another seller’s product, the income must be divided into separate pools. Those two pools must remain separate, so Macy’s needed help moving the right funds to the right account after every transaction.

The solution

Macy’s chose to work with J.P. Morgan because J.P. Morgan offered the payment solutions that solved the company’s unique challenges. J.P. Morgan Concourse allows Macy's to support a large number of suppliers and their bank account details on a single platform. The solution also supports tokenization, which masks consumers’ and sellers’ sensitive payment account information. It also utilizes a single-API integration that supports ever-evolving participant expectations.

The J.P. Morgan solution also solved for complexities related to third-party money (3PM), or cash that belongs to an entity besides Macy’s — in this case, the seller. The biggest opportunity centered around leveraging J.P. Morgan’s 3PM expertise to manage the flow of funds between Macy’s and its partners — a complex process that includes state-related nuances.

Some of J.P. Morgan’s hosted payment solutions also support sellers’ biggest needs. Many small businesses operate with low cash reserves and buffers, so these organizations benefit when they can receive payments more quickly. J.P. Morgan’s solution allows Macy’s to pay sellers weekly compared to bi-weekly or monthly, placing vital funds in the hands of organizations that serve as the lifeblood of local communities. Sellers also benefit from easy enrollment and auto pay.

“For me, my favorite element of the marketplace is getting paid every week, which makes it extremely easy for us to get cash back into our business. That’s a huge win to small businesses like ours.”

The results

Thanks in part to J.P. Morgan solutions, Macy’s Marketplace has been successful and continues to grow, supporting diverse small business owners and providing customers with increased selection. But some benefits cannot be quantified. When the Macy’s Marketplace team considered potential payments providers, it wanted strong solutions, top-notch partnership, and an organization, which it has found in J.P. Morgan, that would learn, grow, and collaborate with them.

“What we've been very happy about is the support model that J.P. Morgan has not only offered us, but our sellers as well. They provide dedicated contacts that can help troubleshoot through anything.”

To learn more about how we can support your business, please contact your J.P. Morgan representative.


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Macy’s Q4 2022 Earnings Release


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