Third-party money (3PM)

Third-party money, or 3PM-- it's a part of treasury with immense opportunity. That's why we gathered these three JP Morgan leaders to explain it in under three minutes. Ready? So, just as a refresher, why are businesses looking for new ways to manage third-party money?

There are so many reasons. Third-party money, or 3PM, is when a company holds cash that doesn't belong to them.

Cash that belongs to others, like customers, sellers, or merchants.

Handling third-party money is very different, in that it needs to be segregated and accounted for differently.

It never touches your income statement, but when managed effectively, can drive tremendous benefits for your business.

Hmm, can you give me an example?

For sure. Let's imagine a company that facilitates services for everyday household tasks, such as moving, delivery, and handyperson work.

And how is 3PM useful to them?

Well, they want to match customers with the service providers easily.

So they launch an online marketplace to go direct to consumers, grow, and become digitally relevant.

That means?

It means they can match freelancers with demand, allowing consumers to find help with day-to-day tasks.

And what exactly do they need to make this happen?

First, they need to facilitate the flow of funds between the buyers and the sellers on their online platform.

Secondly, they need a seamless payment experience for these parties to make their company stand out.

And, third, they need to optimize and manage the third-party cash effectively, while applying the right treatment, segregation, and reporting.

So how can JP Morgan help?

We collaborate closely with the online marketplace to create a tailor-made payments experience.

A specialized account structure combined with seamless payments, payouts, and a thoughtful liquidity solution will create a differentiated value proposition for them.

And the outcome?

The outcome is outstanding. Now they can focus on building out their marketplace, safe in the knowledge that we're taking care of the end-to-end funds flow.

From collection, through multiple payment methods, to safeguarding the funds, and then disbursing them to the merchants.

Wow. So what if I want to talk to somewhere about my 3PM strategy?

Reach out. 3PM is inherent to your digital journey. And for decades we have helped clients around the world hold and transact third-party cash.

JP Morgan is the partner to help you every step of the way.

And that's--

Third-party money--

In under three minutes--

With three JP Morgan leaders.

[MUSIC PLAYING] 

Third-Party Money, or 3PM-- it's a part of treasury with
immense opportunity. That's why we gathered these three JP Morgan leaders to
explain it in under three minutes. Ready? So, just as a refresher, if a company
has third-party money to contend with, what's the first step?

Third-party money needs to be segregated and accounted for
differently. You need to navigate regulation, which can vary around the world.

The first step is to establish the most suitable account
structure for your precise needs.

And that benefits a business how?

Well, it all starts with an account, does it not? The right
account structure is what truly sets your business up for success.

It goes beyond the transaction to identify new revenue
streams and connect commercial considerations to your treasury ecosystem.

All of which lead to efficient operating models and higher
returns.

Sounds good. But there's no one-size-fits-all, right?

Spot on, which is exactly why you need a well-defined
business model underpinned by a customized account structure.

We work with you every step of the way to design and
establish an effective framework.

Whether by country, currency, business line, or even by
product.

So you can curate an exclusive unique digital experience for
your clients.

Ah, so JP Morgan provides the technology and--

The technology and much more than that.

Our market leading embedded finance products, plus an
established account structuring practice empower your digital transformation.

But let's remember no single 3PM solution or even account
type fits all. But we got you covered.

Is safeguarding at the top of your priority list? The
account types we offer from simple demand deposit accounts, to designated
client money, all the way to specialized escrow arrangements where funds are
managed for predefined agreements.

Visibility at [INAUDIBLE]? That's where virtual account
solutions come in. And they can all work together.

Well co-create the right solution for your specific needs so
that you achieve the nirvana of true visibility, control, and optimization.

So it is a continuum, meaning you can actually enable a
progressively aligned experience?

Absolutely. We offer a spectrum of account solutions that
span across our clients' needs.

Marketplaces, pay facts, seeking wholesale rails, or in
e-aspiring companies looking for payments as a service.

The bottom line?

When you're ready to take that first step to define your 3PM
strategy, choose an experienced, highly innovative provider of scale, with a
proven track record, like JP Morgan.

So what if I want to talk to somewhere about my 3PM
strategy?

Give us a call. We've been a leader in 3PM for decades,
making us a trusted partner for clients across all industries worldwide.

And that's--

Third-party money--

In under three minutes--

With three JP Morgan leaders.

[MUSIC PLAYING] 

Third-party money, or 3PM. It's a part of treasury with immense opportunity. That's why we gathered these three JPMorgan leaders to explain it in under three minutes. Ready? So, remind me, why do businesses need to manage third-party money?

Great question. Firstly, when you embrace third-party money, you massively firepower your e-commerce ambitions.

Secondly, a solid 3PM strategy magnifies your user experience to expand your client base and solidifies your existing relationships.

Finally, you propel your business forward, across global markets, currencies, and time zones.

But don't most organizations already have a 3PM strategy?

Actually, no. Many companies have yet to adopt a proactive 3PM strategy. They rely on passive methods or simply haven't addressed it at all.

Why not?

Because establishing a successful 3PM framework is specialized work. Many companies just do not know where to start, or they are simply not aware of the tremendous opportunities this presents.

Not having the right partnerships to help them navigate the regulatory landscape and liquidity nuances also totally possible.

So having no 3PM strategy is a competitive disadvantage?

Absolutely. Customers and suppliers demand an exceptional user experience. In direct to consumer models, multi-party commerce, or even embedded finance, a proven 3PM framework delivers an enhanced digital ecosystem backed by frictionless funding.

When it comes to 3PM, you snooze, you lose. 3PM presents companies with massive growth potential to stay competitive. After all, 3PM is good for business.

Aha. Can you give me an example?

Sure. Picture this, you are an online marketplace that connects buyers and sellers globally. Your customers have access to a wide range of options and they don't have to worry about currencies, market differences, or even knowing the sellers.

And?

And with value adds such as digital wallets, subscription schemes, or loyalty programs, they never leave.

If they haven't already, is it too late for a business to get started?

Not at all. You may be an old pro at this or a growing company. Either way, the time for action is now.

So you're saying that 3PM is an integral part to ensure success today and tomorrow?

You got it. A successful 3PM strategy means more customers, distributors, and suppliers. You save costs and free up your time and resources to do more. And who doesn't like that?

Right. Who can help strategize innovative 3PM solutions?

JPMorgan, of course. We have decades of experience, industry-leading capabilities, and trusted expertise so you can unleash unlimited opportunities for your business.

And that's--

Third-party money--

In under three minutes--

With three JPMorgan leaders.

[MUSIC PLAYING]