From ‘banks as destinations’ to ‘banks as infrastructure’: How J.P. Morgan Payments, Citi, and U.S. Bank are embedding themselves into the digital economy

Not so long ago, banks were destinations, places people visited physically, accessed through apps, or contacted by phone to manage their finances. Today, that model has evolved. Banks are increasingly where you don’t see them, embedded into platforms you already use, providing payments, and even lending in the background of marketplaces, apps, and enterprise systems.

This concept — from ‘banks as destinations’ to ‘banks as infrastructure’ — has transitioned from theory to execution. It’s playing out in real-time, as some of the world’s most established banks reconfigure themselves for the embedded finance economy.

A clear view of this transformation in action can be seen through the initiatives of J.P. Morgan Payments, Citi, and U.S. Bank.

J.P. Morgan Payments: Powering platforms, not competing with them

At the heart of J.P. Morgan Payments’ embedded finance strategy is expanding its platform reach with a clear recognition: the future of financial services isn’t about getting users into the bank; it’s about getting the bank to the users, via the platform.

This thesis was on full display in J.P. Morgan Payments’ partnership with Walmart, announced in March 2025, which embedded the bank’s payments infrastructure directly into the Walmart Marketplace. For the tens of thousands of sellers using the platform, this integration means one thing: they can receive payments, handle disbursements, and manage liquidity, all without leaving the platform on which they sell.

“We aim to be the engine powering platforms and fintechs,” said Jeff Lin, Head of Industry Product Solutions for Embedded Finance & Solutions at J.P. Morgan Payments. “Delivering growth, stickiness, stability, and scale for clients and their ecosystems.”

This model goes beyond a value-add; it’s a reconfiguration of the bank’s role. The traditional branch or portal isn’t going away, but it’s no longer the default. For platforms like Walmart, embedded finance is more than having a shiny payments button — it’s about liquidity, compliance, and capital access delivered through infrastructure they don’t have to build themselves.

It’s also about adaptability. Lin emphasized that a “well-built embedded solution” must accommodate the wide range of seller types on a platform, from seasonal shops to enterprise brands, while simplifying operations, rather than adding friction.

J.P. Morgan Payments is not seeking to emulate fintechs. Its approach is grounded in its core advantages: expansive global infrastructure, strong compliance capabilities, and trusted enterprise reliability. And in a world where platforms are becoming the new distribution channels for financial services, that combination is increasingly more valuable than speed alone.

Citi: BaaS at scale, with a long-term view

While J.P. Morgan Payments is embedding its banking capabilities into platforms like Walmart, Citi is embedding itself into the mechanics of how global commerce moves. Its Treasury and Trade Solutions (TTS) division, described by CEO Jane Fraser as “a thing of beauty,” has over time become a powerhouse in the embedded finance space, particularly in Banking-as-a-Service (BaaS).

“Clients are looking for fully integrated solutions across the entire continuum of accept, hold, and pay as they look to scale quickly and globally,” noted Scott Southall, Head of BaaS at Citi.

That demand is being met with purpose-built tools, such as Citi’s Spring and Payments Express, which are already live in more than 20 markets. Notable is Citi’s virtual IBAN strategy, a technical backbone that enables clients to manage complex payment flows, hold balances, and make global payments all under the hood.

For small to mid-sized sellers operating in a marketplace or through a fintech app, this provides both technical convenience and direct access. Through Citi’s infrastructure, they get the benefits of cross-border banking, compliance, and local market fluency, without ever engaging the bank directly.

With virtual IBANs under increased regulatory scrutiny, particularly in Europe, Southall emphasized the importance of designing future-proof platforms like Citi’s Payer ID Engine that meet evolving standards around fraud, transparency, and KYC.

Meanwhile, Citi is also looking ahead to how stablecoins and digital assets might be embedded into BaaS platforms for real-time, 24/7 cross-border payouts, especially for the gig economy.

“Banks are well-positioned to take on a larger role in the digital asset ecosystem,” Southall said. “Providing customers with the security and trust of established institutions.”

U.S. Bank: Making embedded payments as the foundation layer of integrated experiences

U.S. Bank is accelerating its embedded efforts in real-world execution, with a strong focus on B2B payments, where complexity has long been a friction point for growing businesses.

With its recently expanded embedded payments suite, U.S. Bank is offering what many businesses have long wanted: a fully integrated payment stack that lives inside their own apps, ERPs, or fintech platforms. That means businesses can send disbursements, move funds, and reconcile transactions without leaving their existing systems, and without stitching together a patchwork of third-party providers.

The goal is to “meet clients where they are,” said Mike Jorgensen, Head of Emerging Solutions and Embedded Payments. “Whether they’re integrating payments into a proprietary app, a third-party ERP, or a vertical-specific platform, and make that process as efficient and secure as possible.”

Central to the offering is the bank’s modernized FBO (for-benefit-of) account model, which supports unlimited virtual accounts and gives platforms a way to track funds on a user-by-user basis, crucial for marketplaces, gig platforms, and EWA (earned wage access) providers.

The expanded embedded payments suite is already in use by firms like One Inc., Rain, and Modern Treasury, who use U.S. Bank’s APIs to automate disbursements and embed payment functionality directly into their services.

What distinguishes U.S. Bank’s approach isn’t just the technology; it’s the internal reorientation required to deliver embedded finance in a meaningful way. Jorgensen noted that building this suite meant aligning product, compliance, sales, and client experience into one unified strategy, recognizing that payments have become a customer experience differentiator.

Connecting the dots: From one I (interface) to another I (infrastructure)

Despite differences in product focus and go-to-market strategy, all three banks are converging around a single truth: they no longer want to be just financial destinations. They are becoming embedded infrastructure layers inside the digital economy.

• J.P. Morgan Payments’ partnership with Walmart shows how banks can become invisible yet essential, allowing platforms to own the user experience while the bank powers what’s underneath.
• Citi’s BaaS and virtual IBAN roadmap demonstrates how banks can enable global money movement for clients they may never directly serve.
• U.S. Bank’s embedded payments suite reflects how traditional institutions can turn legacy systems into modular, developer-friendly infrastructure that businesses can introduce into their existing workflows.

Embedded finance was originally seen as fintech’s opportunity. But now it’s also traditional banking’s next frontier. Not because banks are aiming to become tech companies, but because they’re recognizing the power of staying behind the scenes and playing to their strengths, which in turn can unlock ample opportunities for them.

And in doing so, they’re reclaiming relevance in today’s world where the bank interface may no longer be the only front door. The infrastructure is.