JPMorgan Chase acquires payments fintech Renovite to help it battle Stripe and Block

cnbc.com:

JPMorgan Chase has agreed to acquire a payments startup called Renovite to fend off threats from fintech firms including Stripe and Block, CNBC has learned.

The bank, a major player in the global payments arena, said that acquiring Fremont, California based Renovite will speed up its ability to roll out new offerings to merchants.

While JPMorgan is the world's biggest provider of merchant services by transaction volume, fast-growing upstarts including Stripe and Block have climbed the rankings in recent years, thanks to booming e-commerce sales and the proliferation of new payment methods. Merchant acquirers are crucial, behind-the-scenes providers that enable sellers to accept in-person and online payments, keeping a small cut of each transaction.

Despite operating a payments juggernaut that processes more than $9 trillion daily across several businesses, JPMorgan's merchant acquiring revenue stalled last year in part because it was behind in some e-commerce segments and offered fewer services than some fintech rivals, global payments chief Takis Georgakopoulos told investors in a May conference.

«Changing that picture is a big story behind our investments,» Georgakopoulos vowed.

The Renovite acquisition, reported first by CNBC, 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.

Fintech players have used payments processing for merchants as a wedge to help them build ecosystems