Overview

Embedded Payments (EP) provides two specialized account types designed to help platforms and their clients manage funds and payments with greater efficiency. These accounts deliver robust domestic and international payment capabilities across multiple currencies, enabling seamless global transactions. Platforms and their clients benefit from real-time notifications and comprehensive reporting, ensuring full visibility over their payment activity. Choosing the appropriate account structure depends on your business model, regulatory obligations, and the level of oversight you require for payment flows.

Limited account

The Embedded Payments limited account is intended for any platform that operates outside the flow of funds. The platform’s clients receive Limited Demand Deposit Accounts (Limited DDAs) in their own name and Tax ID, with your platform acting as their agent. These clients are fully onboarded and KYC-verified, which allows them to send, receive and manage payments directly through the platform. Your platform manages the overall movement of funds, but your clients can access balances and make payments as permitted.

Limited accounts supports payment flows for platforms and third parties, with certain restrictions and reporting capabilities. 

How it works

1. Onboard your customer to J.P. Morgan: Use the Digital Onboarding API to onboard your customers to J.P. Morgan to verify their identity and conduct due diligence. For more information, see Client onboarding guide. 
2. Create a limited account and integrate balances: Create an account and seamlessly integrate account balances and payout options within your platform. This allows you to offer a cohesive and intuitive financial experience for your clients, enhancing their engagement and satisfaction.
3. Move money in and out and enable settlement for your clients: Gain the ability to move money into and out of their limited accounts. You are able to efficiently manage the flow of funds throughout your platform acting as an agent for your customer with the Embedded Payments API.

Transaction account

In contrast, the Embedded Payments transaction account is designed for platforms that operate inside the flow of funds. It allows platforms to make direct payouts to any external party without the need to set up additional accounts for managing their funds. Platforms can leverage virtual accounts for efficient, scalable payments to a wide range of external parties.

How it works

1. Set up virtual transaction accounts and integrate tracking: Establish virtual transaction accounts to accurately track amounts owed and settled with external parties  
2. Fund and manage transaction accounts to streamline payment flows: Transfer funds into and between transaction accounts for streamlined management of payment flows. 
3. Initiate payouts and collect payments with external counterparties: Initiate payouts and collect payments from external counterparties efficiently.

Consult your legal team to confirm the implications of being inside or outside the flow of funds. 

Next steps