To counter threats from fintech companies such as Stripe and Block, JPMorgan Chase has acquired a payments startup called Renovite. As a leading player in the global payments industry, the bank claims that acquiring Renovite of Fremont, California, will enable it to roll out new merchant solutions more quickly. By transaction volume, JPMorgan is the world’s largest provider of merchant services, but fast-growing upstarts such as Stripe and Block have climbed the rankings in recent years due to booming e-commerce sales. Merchant acquirers enable sellers to accept in-person and online payments, keeping a small cut.
JPMorgan’s merchant acquisition revenue stalled last year, despite operating a payments juggernaut that processes more than $9 trillion daily across several businesses. According to global payments chief Takis Georgakopoulos, JPMorgan had fallen behind in some e-commerce segments and offered fewer services than some of its fintech rivals last year. “Changing that picture is a big story behind our investments,” Georgakopoulos vowed. The Renovite acquisition, is the latest in a string of fintech deals made under CEO Jamie Dimon. Since late 2020, JPMorgan has acquired at least five startups, from an ESG investing platform to a UK-based roboadvisor, on top of making a series of smaller fintech investments. Dimon has repeatedly raised the alarm about the threat fintech players pose to traditional banks, especially in the highly competitive payments game.