Yahoo Finance JP Morgan buys Renovite amid fight to keep top spot in payment processing
Banking giant JP Morgan has agreed to acquire payments firm Renovite as it jostles with the likes of challengers Stripe and Adyen for the top spot in payment processing.
The firm says it hopes to integrate Renovite’s technology to bolster its digital offering as part of a strategy to modernise its payments systems. The terms of the deal were not disclosed.
JP Morgan holds the title of biggest payment processor in the US with almost $1.9 trillion in volume in 2021, but challengers Adyen and Stripe, both founded in the past 16 years, are rapidly catching up, ranked 6th and 12th biggest processors respectively.
Max Neukirchen, global head of payments at JP Morgan, said: “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.”
The deal is the latest in a string of acquisitions by JP Morgan in a bid to enhance its technology offering, including buying UK-based robo-investment adviser fintech Nutmeg in June 2021 and automated investment provider 55ip in December 2020.
JP Morgan’s new retail bank offering in the UK, Chase Bank, has already topped $10 billion in deposits since its launch last year with over half a million customers signed up.
Chris Smith, managing partner at London-based private equity firm Playfair Capital, said: "JP Morgan’s acquisition of Renovite…is more evidence that the old school financial gorillas recognise that their legacy technology stacks are not fit to compete in the modern economy.
“I’d expect more acquisitions and deeper partnerships between banks and FinTechs in the coming months and years. All of this is great news for consumers who should end up getting a better service in future."
