The U.S. bank J.P. Morgan (website) has acquired the digital payment service provider Renovite (website), a leading cloud-native payments technology company, to counter the threat posed by fintech companies such as Block, Klarna, PayPal, and Stripe.
Founded in 2015 and headquartered in Fremont, California, Renovite built six proprietary, cloud-agnostic, and payment token-agnostic payments products to help their clients to optimize infrastructure, including switch, reconciliation, security, issuing, ATM, and testing. Renovite also has a presence in India and the United Kingdom and has supplied services to J.P. Morgan since 2021.
The acquisition is a rare move. Typically, U.S. investment banks tend to partner with fintech startups and take relatively small stakes in them. The acquisition is the latest in a series of fintech deals made under JP Morgan – CEO Jamie Dimon.
Dimon has repeatedly highlighted financial technology companies’ threat to traditional banks, particularly in the highly competitive digital payments space.
