February 22, 2024

J.P. Morgan is developing an electronic wallet for JPM Coin

J.P. Morgan is developing an electronic wallet for JPM Coin

It is reported that J.P. Morgan are working on an "electronic wallet" to help companies better processpayments and perform in this way the banking function.

Strategy J.P. Morgan is helping companies such as Airbnb, Lyft, and Amazon.com provide virtual bank accounts to their customers and “offer benefits such as car loans or discounts on renting money there,” increasing customer loyalty. In addition, companies will pay less for processing payments that J.P. will make. Morgan Last year, the wholesale payment business already brought the company 10% of $ 109 billion.

According to Accenture's report, “over the nextfive years, banks risk losing 15% of their income, or about $ 280 billion, due to increased competition from large technology companies from PayPal to Apple. "

Takis Georgakopoulos, who is engaged in wholesale payments at JPMorgan, is sure that more companies will enter the payment space:

“I have no doubt that e-commerce platforms more often think about how to do what is called traditional banking or insurance products.”

Georgikopoulos also added about potentialcustomers who “want to manage money under our control”. In J.P. Morgan recognizes that they need to develop a solution that simplifies payments for companies and their customers, and alternatives are already being sought.

Uber started working with Green Dot Corp. to deploy electronic wallets that will allow drivers and passengers to track income and manage money. Last year, PayPal bought the payment provider Hyperwallet, "to increase the ability to process cross-border payments for e-commerce platforms and trading floors."

Recently, Apple announced a partnership with Goldman Sachs to create their own credit card, which they plan to use, including for the purchase of iPhone on credit.

There is speculation that the new electronicwallet J.P. Morgan could be the testing ground for their JPM Coin. In its own way, this is the ideal solution, as in J.P. Morgan wants to simplify and lower the cost of banking operations within its ecosystem by retaining customers and making profits.

Entering the payments market, J.P.Morgan finds itself in a very competitive market. For example, Dash already offers transactions that are completed in an average of 2 seconds and for less than $0.0005, providing significant advantages over traditional banking services. Additionally, since Dash — a decentralized open-source project, the coin can be freely exchanged and moved between any platforms that have implemented support for the coin.

Centralized companies should hurry up and offer truly convenient solutions to work successfully in the payment market.