JPMorgan to boost payments business by buying Renovite

JPMorgan to boost payments business by buying Renovite

A picture of the JPMorgan logo in New York City, US, January 10, 2017. REUTERS/Stephanie Keith

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LONDON (Reuters) – JPMorgan (JPM.N) has struck a deal to buy U.S. firm Renovite Technologies to expand its payments processing business and win market share in a lucrative industry where major banks face stiff competition from the financial technology idlers.

The financial terms of the deal were not disclosed.

California-based Renovite, which has a presence in both India and Britain, provides cloud-native technology to improve payment processing through a wide range of products and has about 140 employees, including about 125 engineers.

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“This acquisition will help us achieve our goal of developing a next-generation payment processing platform globally,” said Max Neukirchen, global head of payments and commerce solutions at JPMorgan.

Renovite founder and CEO Viren Rana has described JPMorgan’s payments division as the “natural home” for the company’s employees and technology.

The deal will give JPMorgan a broader and more efficient payment platform that will provide customers worldwide with credit and debit card transaction processing with more payment methods.

It will also help it compete with fintech competitors like Stripe and Adyen (ADYEN.AS) who are at the fore in digital payments technology.

JPMorgan said in January it would spend more than $12 billion on technology in 2022 betting on cloud and modern engineering practices as well as artificial intelligence and machine learning to enhance its digital offering.

Its swoop on Renovite follows a move earlier this year to buy a 49% stake in the Athens-based payments fintech wallet Viva Wallet, and an earlier purchase of a majority stake in German auto giant Volkswagen’s payments business (VOWG_p.DE) before Lay out a scheme. In-vehicle technology that allows drivers to automatically pay for fuel or tolls. Read more

Wall Street Bank has been on a acquisition spree over the past 18 months, closing about 30 deals last year including buying British digital wealth manager Nutmeg and US provider of ESG metrics OpenInvest. Read more

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(Pamela Barbaglia reports). Editing by David Evans

Our criteria: Thomson Reuters Trust Principles.

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