JPMorgan Chase agreed to buy Renovite fintech

JPMorgan Chase acquired payments fintech startup Renovite to rival Stripe and Block and other fintech companies. The agreement was also made to ward off threats from competitors.

JPMorgan Chase is one of the largest firms in the global payments space, and to further grow its business, it will acquire Renovite, headquartered in Fremont, California. This addition to the bank’s portfolio is expected to accelerate its ability to launch new innovative offers to its customers and merchants.

According to CNBC, Stripe and Block are catching up in the industry even though JPMorgan is currently the largest provider of trading services, measured by transaction volume, in the world. In recent years, Stripe and Block have steadily climbed the rankings due to the boom in e-commerce sales and the rise of new payment options.

It was reported that JPMorgan’s acquisition revenue was actually delayed last year, and in part this was due to the fact that it has fallen behind in some e-commerce segments and offers only fewer services compared to its fintech rivals. Takis Georgakopoulos, the company’s head of global payments, further told investors in May that the company has lagged in this facet despite being able to process more than $9 trillion daily across its businesses.

That is why a change has to happen. Georgakopoulos promised that JPMorgan would invest in improving more. The acquisition of Renovite is one of the first steps to make the change happen. This purchase is also the last deal under the leadership of CEO Jamie Dimon.

“Renovite’s cloud-based purchasing capabilities are already helping us better serve our customers,” JP Morgan Chase’s global head of payments technology, Mike Blandina, said in a press release. “As the Renovite platform integrates with JP Morgan Payments, merchant acquiring customers will be able to accept more payment methods worldwide to help grow their business.”

Viren Rana, Founder and CEO of Renovite also said, “Renovite’s mission is to provide modernized infrastructure in the cloud with the latest technology, agility and in-depth knowledge of the payments landscape.”

He added, “We are very proud of the team and the world-class payments technology that we have built, and are excited to be part of JP Morgan Payments. This business is the natural home for our people and technology. We believe that the planned the transaction will help us realize our shared vision of delivering world-class payments capabilities globally through next-generation infrastructure for JP Morgan Payments clients.”