US banking giant JP Morgan has signed an agreement to acquire cloud-native payments platform Renovite Technologies.
The amount JP Morgan has agreed to pay has not been disclosed and the final transaction of the deal is still subject to customary closing conditions.
The acquisition fits into JP Morgan's cloud and digital transformation plans with Renovite set to be added to the bank's payment platforms - JP Morgan Payments. The platform combines treasury services, trade, card and merchant services and integrated payments functions.
Renovite was founded in 2015 and is headquartered in Freemont, California. The company has built six proprietary cloud-based payment products that allow customers to optimise existing infrastructure, such as switches, security software and ATMs. The company is also very active in India and the UK and has been a partner of JP Morgan since 2021.
The firm's mission statement talks about modernising 'ageing' payment infrastructure which, it says is proving to be a costly and insurmountable barrier to the delivery of innovations for payment products. The company has developed an "ultra-modern" suite of payment solutions that can be integrated within legacy environments or even as entirely new platform deployments.
"We are excited to acquire Renovite and accelerate our roadmap for helping our clients stay at the cutting edge of payments innovation," said Max Neukirchen, the global head of payments and commerce solutions at JP Morgan. "This acquisition will help us achieve our goal to develop the next-generation payments processing platform globally."
The acquisition is further evidence of Morgan's commitment to its global clients, the bank said in a statement, and the deal also complements the firm's proposed investments in Viva Wallet as well as its partnership with Volkswagen financial services.
"We believe that the contemplated transaction will help us to realise our joint vision to deliver world-class payments capabilities globally through next-generation infrastructure for JP Morgan Payments clients," said Viren Rana, CEO & founder, Renovite.
