Masterworks Automates Currency Conversion for Cross-Border Investments

Masterworks turns each artwork purchased into investible shares through an SEC-qualified offering and works closely with investors, through its advisory affiliate, to build portfolios across artworks. ^{Masterworks then manages the artwork, including insurance, storage, conservation and public display, until the artwork is resold and proceeds are returned to investors.}

To simplify payments for international users, J.P. Morgan Payments created a fully automated, first-of-its-kind solution centered on its Access® FX Merchant API, which integrates with Masterworks’ platform. ^{When international investors complete transactions with Masterworks, they see prices in their local currency through real-time exchange rates from J.P. Morgan Payments. This makes it simple for investors to understand exactly how much they’re spending in their local currency before they commit to a purchase.}

When an investor decides to complete a transaction, they connect to their local bank account through a third-party payment provider. After approving the payment in their local currency, Masterworks automatically conducts a currency exchange with J.P. Morgan Payments. The funds are converted to U.S. dollars and settled the next business day, then automatically distributed to the artwork’s investment account. This end-to-end integration combines a completely in-app user experience, local payment rail processing, automated currency exchange and multibank settlement into one workflow.

The solution has transformed Masterworks’ international business operations. The entire process requires no human intervention, from the initial pricing display to the final settlement. By removing manual processes and reducing currency conversion costs, Masterworks has seen an increase in completed transactions in euros and British pounds since the solution went live. ^{According to Glenday, this automated approach has reduced operational overhead while creating a smoother experience for investors.}

Masterworks has demonstrated how modern payment technology can transform an investment platform. By integrating global financial capabilities from J.P. Morgan Payments with a novel payment workflow, Masterworks is making fine art investments simple.

With a proven model for handling cross-border payments, Masterworks is exploring new ways to make its platform more accessible to people worldwide. “Our success with J.P. Morgan’s solution has spurred innovation across our organization,” says Glenday. “Now, we’re actively exploring several payment solutions driven by our core objective: making art investing as seamless and accessible as possible for investors worldwide.”