JP Morgan: Payments are eating the world

Report Link: PAYMENTS are eating THE WORLD | J.P. Morgan (jpmorgan.com)

Size of Report: 29 pages

JP Morgan’s proprietary anagram POWER+ framework outlines 5 mega themes and 20 micro themes and value-added services shaping the future of payments, which account for about $54 trillion in global payment flows. These are:

• Platforms
• Online
• Wallets
• Embedded
• Real-time

The combination of most of the world owning a smartphone, access to Internet and ISO 20022 as a global and open standard for payment messaging, provides a common language in which to transact with anyone, anywhere. This infrastructure fuels rapid growth but the modernisation of payments, and the value-added services that surround the transaction will be crucial.

Platforms highlight the opportunities around super apps – the average person having 80 apps on their phone, yet only using nine on a regular basis.

Online highlights the shifts toward marketplaces, frictionless experiences that digital identity can help solve, growth of gig economy and shifting to the creator economy.

Wallets cover the popular digital wallet growth seen today but, in the future, increasingly cryptocurrency, stablecoin and CBDC related.

Embedded Finance is a large future growth area only just at its beginning. The section covers insights to Connected Cars – a wallet on four wheels with loyalty and rewards creating sticky in-car experiences, Wearables, Internet of Things (IoT) and the importance of biometrics, Virtual Worlds.

Real-time is about the change to moving and settling payments in seconds, with the well summed up quote “The last decade was about connecting people, this decade is about connecting platforms. That’s why payments are going to win.”

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