Payments & FX
eBay Simplifies Account Structure with Virtual Collect
New solution increases efficiency, visibility and automation
Founded in 1995 and headquartered in California, U.S., eBay Inc. is one of the world’s largest online marketplaces, facilitating both consumer-to-consumer and business-to-consumer transactions. As of 2017, eBay has more than one billion live listings and serves 170 million buyers in 190 markets. The firm aims to connect buyers and sellers through product experiences that are fast, mobile and secure.
As eBay expanded into Asia Pacific, the firm faced several complex cash management challenges. The biggest hurdle was in South Korea, where businesses often require service providers to open collection accounts with local banks in order to reduce costs and enhance banking relationships. As eBay’s customer base grew, so did the number of collection accounts.
In addition to managing multiple accounts, eBay faced significant challenges in reconciling balances and working with different platforms across various local banks. eBay needed a solution that could resolve this issue, which has long overwhelmed many businesses in South Korea.
The J.P. Morgan Solution
eBay collaborated with J.P. Morgan to implement Virtual Collect, an enhanced account receivables reconciliation process that enabled eBay to simplify local currency collections in South Korea and reduced the need to maintain multiple accounts with local banks.
Through this solution, J.P. Morgan uses its accounts with major South Korean banks to receive eBay’s customer payments. Host-to-host connectivity enables the seamless transfer of funds between beneficiary banks to eBay’s account with J.P. Morgan.
How Virtual Collect works:
- eBay was provided with a set of Virtual Collect numbers that link to J.P. Morgan’s accounts with local South Korean banks
- eBay assigns a unique Virtual Collect number to each customer
- Customers quote their unique Virtual Collect number as the beneficiary account number when making a payment
- The payments are credited to J.P. Morgan’s account with the beneficiary bank and then swept to eBay’s collection account in real time
- eBay can view collection details through a web reporting portal that includes remitter name, amount and accompanying details
Maeng Joo Young, Senior Manager eBay Korea Co., Ltd.
eBay is a highly commended winner of the Treasury Today 2015 Adam Smith Awards Asia Judges’ Choice Category
This webpage was prepared exclusively for the internal use of the J.P. Morgan client to whom it is addressed (including the client’s affiliates, the “Company”). This webpage is incomplete without reference to, and should be viewed solely in conjunction with, the oral briefing provided by J.P. Morgan.
This webpage is confidential and proprietary to J.P. Morgan and is not intended to be legally binding. J.P. Morgan makes no representations as to the legal, regulatory, tax or accounting implications of the matters referred to in this presentation. The products and services described in this webpage are ordered by Banco J.P.Morgan, S.A., Institución de Banca Múltiple, J.P.Morgan Grupo Financiero and/or its affiliates subject to applicable laws, regulations and service terms.
J.P. Morgan is a marketing name for the Treasury Services businesses of JPMorgan Chase Bank, N.A. and its affiliates worldwide.
© 2018 JPMorgan Chase & Co. All rights reserved.