Industry News, Trustworthy Insights

Popular Companies:

JP Morgan agrees to acquire payments fintech Renovite.

This deal supports JP Morgan’s mission to expand its payments business and to help hold off threats from fintech firms Stripe and Block that are growing quickly in the space.

The COVID-19-induced digital transformation has continued to grow in strength and with digital payment demands from consumers growing in an accelerated manner, this puts increasing pressures for financial services institutions to keep up with this pace. 

One solution explored and enacted by JP Morgan to meet this growing demand is the acquisition of Renovite, a cloud-native payment technology company, for an undisclosed sum.

What is Renovite? 

Founded in 2015, the Californian-based firm provides cloud-native technology to optimise payment processing through its portfolio of six innovative software products and services. 

Renovite focuses on providing modernised payment infrastructures to displace the ageing technological infrastructures currently used by financial service institutions; most of which are being heavily influenced by their outdated complex legacy systems, thus providing a huge barrier for these institutions to reap the benefits of innovations for payment products. 

Renovite’s solutions can either work seamlessly alongside the legacy systems or can even displace the current payment infrastructures using ultra-modern technologies. 

Why did JP Morgan acquire Renovite?

Renovite partnered with JP Morgan in 2021 to run trials as a service provider and has since impressed the bank, so much so, they decided to acquire them entirely, said Mike Blandina, JP Morgan’s global head of payments technology. 

JP Morgan is currently the global leader of merchant services by volume of transaction. However, with thriving e-commerce sales and the recent rapid growth of payment processing platforms, fast-growing startups like Stripe and Block are rising to the top rapidly. Compared to Stripe and Block, JP were offering fewer services resulting in slower growth for JP adding yet another reason for the acquisition.

Upon completion of the acquisition, subject to customary closing conditions, Renovite will be integrated within J.P. Morgan Payments. Renovite’s innovative and world-class payment capabilities allow JP Morgan’s merchant acquiring clients to accept more payment methods globally, ultimately helping them improve and expand their business, and boosts JP Morgan’s transition to the cloud. 

This strategic deal builds on the bank’s recent streak of making big investments in fintech under CEO, Jamie Dimon, having acquired at least five fintech entities in the last two years. He described it as a testimony to commit to the bank’s goal of delivering “resilient and optimised infrastructure” for its global clients ensuring they “remain at the cutting edge” of the latest payment technology. 

Analyst: Arif Muhammad

Industry news used by professionals

Try £4.99 per month

Already a member?
Weekly Digest

All the week’s industry events straight to your inbox.

Before your sign up, please read terms of use and privacy policy.


FREE Weekly Newsletter

Trusted industry insights used by Professionals

By signing up you agree to our terms of use and privacy policy.

Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors

Password Reset

You will soon receive a Reset Password link

FREE Weekly Newsletter

Trusted industry insights used by Professionals

By signing up you agree to terms of use and privacy policy.

Send us your article

[formidable id=3]