Investments in payment processors are thriving and increasing and everyone should follow suit, believes Jeremy Balkin – JPMorgan Chase’s head of innovation and corporate development. Speaking at the Mediterranean Business Summit in New York, he urged everyone to continue to focus on payments. Because it’s a space that’s borderless.
The global bank, earlier this year, acquired around 49% of Viva Wallet, an Athens-based payments services provider. A year ago, it made nearly 20 investments in the fintech space, including a 75% stake in Volkswagen Payments – specially designed for the automotive industry.
Balkin believes payments are the natural tip of the spear for financial services, Payments relate to intersecting with the new world of fintech. Moreover, it’s an ideal space to collaborate and build business models to move money faster, safely, and more efficiently. The investment bank executive outlined that banks with the ability to the custody of clients’ digital assets and be competitive are going to be the most successful in the coming years.
JPMorgan analysts predict tech modernization efforts topping $2.8 billion in 2022. They said the increase in technology infrastructure will lead to over $5 trillion in payments. Balkin pointed out that payment service providers like Block and PayPal have doṇe an incredible job in the consumer market. He expects consolidation in payments to come, much like Amazon’s rise during the dot com bubble. And digital banking is only going to continue with its upward trend. Balkin says the focus on virtual is more important than ever.