JPMorgan Chase has agreed to purchase Renovite, a payments company, in order to counter challenges from fintech startups such as Stripe and Block, the investment bank stated today.
The bank, a leading participant in the global payments sector, stated that purchasing Renovite, situated in Fremont, California, will accelerate its capacity to roll out new offers to merchants.
While JPMorgan is the world’s largest provider of merchant services by transaction volume, fast-growing disruptors such as Stripe and Block have risen in recent years as a result of soaring e-commerce sales and the development of alternative payment methods. Merchant acquirers are critical behind-the-scenes providers who allow retailers to accept in-person and online payments while retaining a tiny percentage of each transaction.
“We are excited to acquire Renovite and accelerate our roadmap for helping our clients stay at the cutting-edge of payments innovation. This acquisition will help us achieve our goal to develop the next-generation payments processing platform globally,” said Max Neukirchen, Global Head of Payments & Commerce Solutions, J.P. Morgan.
Renovite, which was founded in 2015 and is located in Fremont, California, focuses on cloud-native technologies. To assist its clients in optimizing infrastructure, the business has established six unique, cloud-neutral, and payment token agnostic payment solutions, including switch, reconciliation, security, issuance, ATM, and testing. Renovite also has offices in India and the United Kingdom, and it has been providing services to J.P. Morgan since 2021.
The Renovite purchase is the latest in a series of fintech transactions announced by CEO Jamie Dimon. Since the end of the year 2020, JPMorgan has made at least five acquisitions, including a number of smaller fintech investments. These acquisitions include a platform for ESG investing as well as a robo – advisor based in the United Kingdom.
Dimon has issued several warnings to conventional banks about the danger posed by fintech companies, notably in the extremely cutthroat payments market.
