Strategic deal will expand J.P. Morgan’s omnichannel merchant acquiring capabilities for European SMBs
J.P. Morgan (NYSE: JPM) announced today that it has entered into an agreement with Viva Wallet a cloud-based payments fintech company, to acquire controlling interest of approximately 80 percent in the company, subject to regulatory approvals. The deal is expected to close in Q3 2022.
The deal will expand the bank’s omnichannel merchant acquiring capabilities offered to European small- and medium-sized businesses. Expanded product offerings through Viva Wallet’s platform include a seamless merchant and customer experience, with local issuing, banking and acquiring capabilities across 23 countries including local payment methods and the ability to issue local IBANs (international bank account numbers).
“The European Payments landscape is fragmented yet large in terms of opportunity, with more than 17 million merchants ripe to implement scalable payments solutions,” said Takis Georgakopoulos, Global Head of J.P. Morgan Payments. “With Viva Wallet, J.P. Morgan Payments will transform its presence in the region, empowering new growth and transformation targeted at SMB and middle market merchant services clients, making it easier for them to accept and make payments by any method or channel, from anywhere and at any time.”
With Viva Wallet, J.P. Morgan Payments will transform its presence in Europe, empowering new growth and transformation targeted at small- and medium-sized businesses and middle market merchant services clients, making it easier for them to accept and make payments by any method or channel, from anywhere and at any time.
Founded in 2000, Viva Wallet is headquartered in Athens, Greece, and focuses on small and medium business and enterprise merchants. The company built a proprietary, cloud-based payments platform that is able to offer a broad array of Value Added Services to attract and retain merchants including Tap to Device technology, merchant cash advance, bill pay, expense management, virtual debit card issuance, cash disbursement, gift cards and loyalty.
The platform is a natural fit for J.P. Morgan’s Payments business—which combines corporate treasury services, trade finance, card and merchant services capabilities—and delivers an integrated payments experience to clients across the economy. The business recently unveiled Chase Payment Solutions in the U.S. and the majority stake in Viva Wallet will scale our international products and services across European SMBs.
“With Viva Wallet, J.P. Morgan will begin to offer a holistic omnichannel merchant acquiring capability across Europe and better serve small and medium businesses,” said Max Neukirchen, Global Head of Payments & Commerce Solutions, J.P. Morgan. “This investment enables J.P. Morgan to serve merchant customers in Europe beyond e-commerce.”
This investment enables J.P. Morgan to serve merchant customers in Europe beyond e-commerce.
The majority stake in Viva Wallet comes on the heels of the firm’s recent announcement to enter into a strategic investment in Volkswagen Financial Services AG, with plans to acquire a controlling interest of close to 75 percent in the car manufacturer’s payments platform, subject to regulatory approvals.
J.P. Morgan Securities LLC served as exclusive financial advisor to [J.P. Morgan] and Freshfields Bruckhaus Deringer LLP served as legal advisor. Jefferies Group LLC served as exclusive financial advisor to Viva Wallet and Davis Polk & Wardwell LLP served as legal advisor.
About JPMorgan Chase & Co.
JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services firm with assets of $3.8 trillion and operations worldwide. The Firm is a leader in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing, and asset management. A component of the Dow Jones Industrial Average, JPMorgan Chase & Co. serves millions of customers in the United States and many of the world’s most prominent corporate, institutional and government clients under its J.P. Morgan and Chase brands. Information about JPMorgan Chase & Co. is available at www.jpmorganchase.com.
About J.P. Morgan’s Payments Business
J.P. Morgan’s Payments business combines the firm’s treasury services, trade, card and merchant services capabilities to help clients pay anyone, at any time, from anywhere in the world. Operating at the forefront of payments innovation, our solutions help clients succeed in an era of digital transformation and evolving customer expectations. J.P. Morgan processes approximately 26 million transactions per day worth between $6-8 trillion, is the world’s top USD clearer and was the first bank to offer real-time payments across USD, GBP and EUR.