J.P. Morgan has entered into a deal to buy cloud-native payments technology provider Renovite Technologies for an undisclosed sum.

Established in 2015, Renovite has developed six proprietary, cloud-agnostic and payment token agnostic payments solutions.

These solutions are designed to help their users improve infrastructure such as switch, reconciliation, security, issuing, ATM and testing.

The California, US-based firm has operations in India and the UK as well. Since last year, the company has been offering services to J.P. Morgan.

With the new deal, J.P. Morgan Payments aims to develop an improved merchant acquiring platform as well as boost its payments innovation strategy and drive its cloud transformation.

The purchase is also expected to help J.P. Morgan compete with other fintech companies such as Stripe and Block, reported CNBC.

It complements a previously announced investment made by J.P. Morgan in Greek cloud-based payments fintech firm Viva Wallet. The investment, which awaits regulatory approvals, was announced in January this year.

The new deal also follows a strategic alliance between J.P. Morgan and Volkswagen Financial Services.

Following the completion of the deal, which is subject to customary closing conditions, Renovite will operate under J.P. Morgan Payments.

The banking giant’s payment arm offers corporate treasury services, trade finance, card and merchant services solutions.

J.P. Morgan global head of Payments Technology Mike Blandina said: “Renovite’s cloud-native merchant acquiring capabilities are already helping us better serve our clients.

“As the Renovite platform integrates with J.P. Morgan Payments, merchant acquiring clients will be able to accept more methods of payments around the globe to help grow their business.”