JPMorgan Chase, the biggest U.S. bank company, said in a press release today that it has agreed to acquire the Fremont, California-based payments services company Renovite Technologies.
A spokesman for the New York bank declined to say how much JPMorgan plans to pay for the purchase.
JPMorgan said acquiring the cloud-native company will allow it to update the services it offers merchants for acquiring their card payments as part of the broader financial services suite it provides.
“This acquisition will help us achieve our goal to develop the next-generation payments processing platform globally,” Max Neukirchen, JPMorgan’s global head of payments and commerce solutions, said in the release.
The acquisition will also allow JPMorgan to better compete with a host of new fintechs, including Stripe and Block’s Square, that are delivering new services to merchants to aid them in more efficiently processing payments online and in-person.
In addition to merchants, Renovite’s website says its clients include payment processors and financial institutions. JPMorgan already had a relationship with Renovite, providing services to it since last year, according to the press release.
Renovite is led by CEO Viren Rana. Previously, Rana founded and led the global payments tech company ISTS Worldwide, which was purchased by Clear2Pay in 2011.
In addition to its California headquarters, Renovite has offices in India and the United Kingdom. The JPMorgan spokesman didn’t immediately respond to a question about how many employees Renovite has and whether they will be retained.
JPMorgan said the acquisition would complement its planned investment in the payments software company Viva Wallet announced earlier this year and its proposed purchase of a controlling stake in the payments business of Volkswagen Financial Services AG announced last year.
In addition to JPMorgan’s acquisition, other recent developments in the merchant payments services arena include a new application interface from Checkout.com and a one-click payment button from the fintech Revolut, noted a recent report from RBC Capital Markets.
“We anticipate further competition and integration of payments & technology as providers look to create seamless payment ecosystems,” RBC Analyst Daniel Perlin said in a report released today.