The integration allows businesses to access trade finance tools natively, within their existing Oracle Cloud ERP environment.

For FedEx, the arrangement allows the company to extend payment terms, optimising its own cash position, whilst simultaneously offering suppliers the option of early payment through JP Morgan at rates based on FedEx’s credit rating. This type of reverse factoring has become increasingly popular amongst large corporates seeking to balance supplier relationships with liquidity management.

“In an environment where treasury is constantly being asked to do more with less, it’s critical that we reduce barriers to entry for corporates,” Dominic Giordani, Global Head of Supply Chain Finance Product Management at JP Morgan Payments, told Trade Finance Global (TFG).

“If you need a working capital solution in a hurry in a fast-changing world, you don’t want to be waiting for space in a tech queue that has already been finalised a year ahead,” he explained.

“This solution is exciting because it reduces what used to be a heavy implementation effort to a simple activation process – which allows the treasurer to use our working capital toolkit as a quick, flexible solution to an immediate problem.”

Embedded finance allows services to be integrated directly into business software rather than accessed through separate banking platforms. In this regard, the bank’s partnership with Oracle, which began in 2022, now includes various integrated services from basic banking connectivity to AI-driven expense management tools. The supply chain finance feature was announced at Oracle’s CloudWorld conference last year alongside other enhancements.

For corporates, technology implementation and aligning on supplier strategy are simultaneously and vitally important in achieving critical mass. “Partnering with an SCF provider who can meet the client on their terms – whether in the technology space or global servicing remit – can be a way to reduce challenges and achieve scale,” said Giordani.

Beyond the Oracle integration, FedEx has also implemented JP Morgan’s blockchain-based Kinexys platform for the first time, using its digital payments capabilities to manage liquidity across notional pools in Europe and Asia Pacific. 

“Leveraging JP Morgan Payments’ supply chain finance and liquidity solutions in a way that is tailored to our business has strengthened our financial position and enhanced our operational resilience,” said Trampas Gunter, Chief Vice President of Corporate Development and Treasurer at FedEx.

The integrated approach also reflects broader trends in corporate treasury management; finance departments increasingly seek unified platforms that can handle multiple functions rather than managing relationships with numerous specialist providers.

Umar Farooq, Global Co-Head at JP Morgan Payments, said the collaboration demonstrated the bank’s “commitment to innovation” in helping clients optimise financial performance. Oracle’s executive vice president of applications development, Rondy Ng, described the partnership as “transforming how our joint customers unlock new banking and working capital solutions”.