What BILL Holdings gets from the JPMorgan Wallet

• Key insights: BILL Holdings, a back-office automation fintech, is using JPMorgan Payment's white-label digital wallet to subledger its own clients' accounts. Reconciling client payments to BILL's corporate credit card, the BILL Divvy Card, is the company's first use case.  
• What's at stake: Payment companies and fintechs have been rushing to modernize their tech stacks as artificial intelligence becomes more prominent in business operations. 
• Forward look: BILL will eventually use the API-based digital wallet as a foundation for future product development, including artificial intelligence products. 

Like most of the payments industry, back-office automation fintech BILL Holdings is looking to transform its organization in the era of artificial intelligence, and it has teamed up with JPMorgan Payments to help accelerate development.

BILL is using JPMorgan Payment's white-label API-based digital wallet to subleger its own clients' accounts. Those subledgered accounts each have their own routable bank account numbers for pay-ins and payouts, Ryan Schmiedl, head of embedded finance and solutions at JPMorgan Payments, told American Banker.

"From the same API and experience, you can then manage the flow of funds, so you can sit there and issue and move money between the accounts seamlessly," Schmiedl said, noting that the accounts connect to payment rails supported by JPMorgan, including real-time payments.

Reconciling client payments to BILL's corporate credit card – the BILL Divvy Card – is the company's first use case. BILL has hundreds of thousands of what it describes as "Fortune 5 million" small- to medium-size business clients.

JPMorgan's wallet allows companies to subledger a single bank account so it functions as if it were multiple bank accounts. That's important for a company like BILL, a licensed money transmitter that requires bank partnerships to offer some of its financial services to its clients.

For example, BILL is a client of JPMorganChase with a single corporate account. But BILL has thousands of small-business clients that use its corporate card and make payments on those accounts.

"Before the wallet, we had thousands of customers who were reaching their limits every day that would have to pay either by a check, ACH or wire," Mary Kay Bowman, executive vice president and general manager of payments and financial services at BILL, told American Banker. "That would come into a single bill account, which then we would have to reconcile" to figure out who that payment came from.

It took BILL's treasury team more than 20 hours per week to reconcile those payments, and companies had to wait two to three days to access credit, Bowman said.

Reconciling card payments is the first step; the technology will eventually be used as the foundation to develop new automation and artificial intelligence products for its clients, Bowman said.

The wallet "opens up the door for further automation and further intelligence solutions, like some of our AI solutions," Bowman said. "It becomes part of the foundation for the next generation features and solutions that are going to help the Fortune 5 million compete."

That foundation will be critical as BILL looks to reframe itself as an AI-first company. BILL in its fiscal Q3 2026 quarter and most recent earnings report posted double-digit growth, "meaningful" margin expansion and GAAP profitability, according to Keefe Bruyette & Woods.

"We think management pivoting aggressively to an AI-first strategy supported by unique data, platform scale, and network effects could benefit the company, especially when also considering restructuring the cost basis," KBW analysts said in a research note. "That being said, we need to see the strategy executed and if it leads to enhanced customer acquisition."