The deal will help JPMorgan build its next-generation merchant acquiring platform.

J.P. Morgan (NYSE: JPM) has taken another step towards further enhancing its payments technology and to build out its next-generation merchant acquiring platform. The banking giant announced the acquisition of Renovite, a payments fintech offering a high-tech suite of payment solutions, for an undisclosed amount. (JP Morgan)

Across several businesses, JP Morgan processes over $9 trillion of transactions every day. Furthermore, the bank is globally the world’s biggest provider of merchant services by transaction volume. However, according to CNBC, it has lost some momentum in its merchant acquiring business, losing ground to upstarts including Stripe and Block.

Renovite technology

Renovite, which is headquartered in California, and has a presence in the UK and India, offers six payment products for the optimization of clients’ infrastructure, including switch, reconciliation, security, issuing, ATM and testing. It took on JP Morgan as a client in 2021.

JPMorgan CEO Jamie Dimon has long nurtured apprehensions about the inroads fintechs can make into traditional businesses, and since 2020 the bank has made at least five acquisitions in the fintech space.

Max Neukirchen, Global Head of Payments & Commerce Solutions, J.P. Morgan. said the acquisition would accelerate the bank in its plans to help 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,” he said in a statement.

“The contemplated transaction will help us to realize our joint vision to deliver world-class payments capabilities globally through next-generation infrastructure for J.P. Morgan Payments clients,” said Viren Rana, CEO & founder, Renovite.

“As the Renovite platform integrates with J.P. Morgan Payments, merchant acquiring clients will be able to accept more methods of payments around the globe to help grow their business,” said Mike Blandina, Global Head of Payments Technology, J.P. Morgan.

In September last year, JP Morgan acquired a controlling interest in Volkswagen’s car payments platform operating in 32 markets around the world. The business offers a range of digital payments services across the auto ecosystem and facilitates payments across the Volkswagen (ETR: VOW3) network in support of all Volkswagen Group brands globally.

Related Story: JPMorgan Chase Acquires College Financial Planning Platform Frank