JPMorgan Chase (JPM) and Walmart (WMT, Financial) are collaborating to accelerate payment processing for sellers on Walmart's online platform. This partnership aims to streamline the acceptance and management of payments for sellers using JPMorgan's financial systems. Walmart’s marketplace hosts 100,000 sellers, offering over 700 million products across categories like beauty, clothing, home goods, and electronics. Recently, Walmart reported a 40% sales increase on its marketplace platform in the fourth quarter.
Embedded financial software, which provides financial services directly to customers and businesses, is increasingly being adopted by companies. According to a McKinsey report, over $2 trillion in transactions are expected to shift from traditional retailers and distributors to marketplace platforms.
Leah Cao, JPMorgan's Head of Embedded Finance and Solutions, views this partnership as a growth opportunity. She mentioned that JPMorgan currently has over 20 clients in embedded finance collaborations and anticipates this number to double next year. The partnership with Walmart is currently available to U.S. sellers, but there are discussions to expand the service to Europe and other regions.
